Federal Reserve Chair Jerome Powell just gave the stock market and the U.S. economy exactly what they needed to continue the steady growth they've seen in the last several years, CNBC's Jim Cramer said Friday.
In a group interview with former Fed leaders Ben Bernanke and Janet Yellen, Powell said Friday that he would be "patient" with the central bank's interest rate policies in the year ahead. The remark sent stocks soaring, with the Dow tacking on some 800 points intraday.
"Memo to Powell: keep listening. Be patient. Enjoy the employment gains. Let's keep the strength going by waiting a little and not being too judgmental about rate hikes like some of your colleagues," Cramer said.
The "Mad Money" host reiterated his distaste in some Fed officials' tendency to stick to traditional metrics when gauging how the economy is doing.
"How can you claim to be data-dependent if you've made up your mind before you see the data that you need one or two more rate hikes to get back to normal?" he asked. "Normal is where the data says you should go. Normal is the natural progression of jobs being created without a lot of inflation. Normal is not a percent."
The Fed, whose mission it is to keep inflation at bay while keeping people employed, will eventually have to reconsider what it sees as "normal" as a result of technology, Cramer continued.
"Every device is ... designed to lay people off. Every software program you have is designed to let companies hire fewer people, because people are so expensive. Every invention of any note is about taking a job that's done by 10 people and making it so it's only two people, and they can do it better," he said.
To read more about the Fed's reversal, click here.