'This Market Can Go Higher So Easily': Jim Cramer Praises Jerome Powell, Says The Fed Chair 'Is Winning In So Many Places' — Is He Right?

The U.S. stock market showed impressive gains in 2023, with the S&P 500 surging 17%. According to CNBC's Jim Cramer, further gains could be on the horizon.

Cramer attributed his optimistic outlook in part to Federal Reserve Chairman Jerome Powell.

"Powell is winning in so many places, from homes to job openings to starting salaries," Cramer said in a recent post on X, formerly known as Twitter. "That's one of the reasons this market can go higher so easily."

The post has since received 1.7 million views and over 2,200 likes.

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It's not the first time the "Mad Money" host has praised the U.S. central bank chief.

In December 2022, Cramer said, "[Powell] is one of the best central bankers in the world and he's got a winning hand. Would you please just let him play it."

Is Powell "winning in so many places?" Here's a closer look at the sectors highlighted by Cramer.

Housing

Housing costs can be a big driver of inflation.

In July 2023, the consumer price index (CPI) rose 0.2% over the previous month, with the index for shelter increasing by 0.4%. The Bureau of Labor Statistics said that shelter inflation "was by far the largest contributor" to the monthly increase in CPI.

In particular, rent increased by 0.4% in July and is up 8% from a year ago. Meanwhile, owners' equivalent rent rose by 0.5% for the month and 7.7% year over year.

The Fed has implemented significant interest rate hikes over the past year and a half to combat rampant inflation. While high interest rates can cool the housing market, they also lead to bigger mortgage payments.

According to The State of the Nation’s Housing 2023 report from Harvard University's Joint Center for Housing Studies, the annual income needed to afford payments on a median-priced home in the U.S. is now $117,100, up nearly $20,000 from last year.

And that means millions of households are now priced out of the market.

"The number of renter households able to afford these higher payments shrunk by 32%, from 7.5 million to 5.1 million, a loss of 2.4 million potential homebuyers,” the study said.

While it's difficult for new homebuyers to enter the market, new companies have innovated ways for people to earn passive income from real estate. Here's how to invest as little as $100 in a rental property while staying completely hands-off.

Job Market

Cramer cited job openings as one of Powell's winning areas.

According to the latest Job Openings and Labor Turnover Survey (JOLTS), the number of job openings in July declined by 338,000 from the previous month to 8.827 million — the lowest level since March 2021.

The Fed wants hiring to slow because when there's strong demand for labor, it would drive up wages and fuel inflation.

While job openings have been on a downward trend, they were still well above where they were before the pandemic.

Meanwhile, the latest Employment Situation Summary showed that the U.S. economy added 187,000 jobs in August, while the unemployment rate rose from 3.5% to 3.8%.

Workers are earning higher wages than before. In August, average hourly earnings increased by 0.2% to $33.82. Over the last 12 months, average hourly earnings have gone up by 4.3%.

Different Opinions

While Cramer lauded Powell's expertise, other experts have leveled criticism at the Fed chair.

Last year, Wharton School of the University of Pennsylvania professor Jeremy Siegel said that Powell owes the American people an apology.

"Honestly, I think Chairman Powell should offer the American people an apology for such poor monetary policy that he has pursued and the Fed has pursued over the past few years," he said.

Earlier this year, Sen. Elizabeth Warren said that Powell "has failed" in his role.

"He has had two jobs. One is to deal with monetary policy. One is to deal with regulation. He has failed at both," she said. Warren's comments came following the collapse of Silicon Valley Bank and Signature Bank.

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