CNBC's Jim Cramer expects Federal Reserve Chairman Jerome Powell's inflation outlook to be more accurate than the bond traders who are betting on a sustained increase and pushing Treasury yields higher.
Cramer's comments on "Squawk on the Street" came after the yield on the 10-year Treasury jumped to 1.75%, a level not seen since January 2020, continuing a bond sell-off that's rattled equity investors this year. Yields move inversely to prices. The action in bonds is being driven by concerns that more Covid stimulus on top of an already recovering economy will spark worrisome inflation. The 10-year yield started the year at less than 1%.
"It's happening very fast, and I think this is the bond market saying, 'You don't know what you're doing, Jay Powell,'" Cramer said. "Well, let me tell you something Mr. Bond Market, you're going to be dead wrong."