CNBC’s Jim Cramer said Wednesday that while the consumer price index suggests the Federal Reserve is losing in its fight against inflation, the dismal performance of stocks, particularly the Russell 1000, offers a different view.
“When I talk about the Fed winning or losing the fight against inflation, I mean the fight to cut expensive spending, allowing overstretched supply chains to catch up, relieving some of the stress in the labor market.” , the “Mad Money”. said the host.
“When you look at the collapse of the IPO market and you see stocks in the Russell 1000… we’re witnessing the most extreme wealth destruction we’ve seen since the dot-com crash in 2000.” he said. “It’s exactly what the Fed needs in yet another day when a government inflation number is too high,” he added later.
Cramer’s comments come after the Bureau of Labor Statistics reported Wednesday that the consumer price index rose 8.3% year over year, hovering near 40-year highs.
To illustrate his point, Cramer showed a list of the worst in the Russell 1000 put together by CNBC statistician Gina Francolla.
“All this wealth destruction makes those actions the trump cards in [Fed Chair] “Jay Powell’s fight to control inflation,” Cramer said. “The losses on these names represent the extra vacation, the new roof, the fancy dinner. … These losses slow down the economy.”
Here is Cramer’s list of the worst performing companies in the Russell 1000:
- drive software
- creep energy
- Go Health
- fair way
“This is a gallery of rogue losers that is expanding every day… The same goes for almost all IPOs and SPACs. Their declines are part of the fight against inflation,” Cramer said.