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Workers assemble semi trailers on the factory floor at the Wabash National Corp. manufacturing facility in Lafayette, Indiana.
Finally, Cramer looked into why a top truck any at the “sweet spot of e-commerce” issued a wildly negative earnings preannouncement on Friday.
Between a lack of brand new workers, rising raw costs due to steel tariffs as well as slumping demand, Wabash National’s business will be being squeezed, as well as the Fed’s plans to hike interest rates several more times don’t exactly help, Cramer said.
as well as while the “Mad Money” host understood why Fed Chair Jerome Powell was forecasting more rate hikes — rising labor costs, like those for overtime, tend to be inflationary — he thought some inflation was “a tiny cost to pay for a strong economy.”
“Let’s call the item a consequence of full employment. Why not just let those workers make a little more money?” he said. “Companies like Wabash as well as Thor [Industries will] sort the item out. They got of which big tax cut anyway. Meanwhile, the tariffs are already slowing down the economy, so the Fed may not need to take much more action anyway.”
nevertheless if the Fed doesn’t listen, U.S. manufacturers aren’t exactly left that has a pretty picture, Cramer warned.
“We’re left with of which situation where, just when a down-as well as-out any finally has some trust for a big year, the item’s gotten hit with the triple-whammy of higher labor costs, higher steel costs as well as higher interest rates,” he said. “To me, these rate hikes seem like an awfully high cost to pay to break an inflationary cycle of which’s mostly government-made to begin with.”