There’s enough pain in the market for the Fed to slow rate hikes

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There's enough pain in the market for the Fed to slow rate hikes
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CNBC’s Jim Cramer said on Monday that the market is suffering enough that the Federal Reserve is considering slowing its pace of interest rate hikes.

“There’s enough turmoil that the Fed needs to slow its rate hikes, if only to keep the headwinds from turning into some sort of weird [Category] 5 hurricane,” he said.

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Shares fell on Monday, snapping last week’s winning streak, as investors pondered corporate and economic news that sent mixed signals about the state of the economy.

Amazon reportedly intends to lay off about 10,000 workers starting this week, which would be its biggest workforce reduction in history. The cuts would make the e-commerce giant the latest tech company to downsize this year to cut costs in a deteriorating economic environment.

One bright spot during the trading session was an indication from Federal Reserve Vice Chairman Lael Brainard that the central bank may soon reduce its pace of interest rate hikes.

Cramer cited reported layoffs at Amazon and unrest in other sectors like crypto and software stocks as examples of the Fed’s damage. The Fed has already done a lot of damage to the economy, it’s just that everything is concentrated in the most inflated sectors,” he said.

He added that consumers were also starting to feel the brunt of Fed interest rate hikes, especially as the number of companies laying off workers grew.

“Other than travel, people aren’t doing much. They’re hunkered down now, trying to figure out if they should go back to work while traveling to their tenth wedding since we came out of pandemic mode,” he said.

Jim Cramer Says There's Enough Pain In The Market For The Fed To Slow Down

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