CNBC's Jim Cramer on Tuesday defended Federal Reserve Chair Jay Powell and said that the beaten-down state of previously inflated stocks shows the Fed chief is on the right track to corralling inflation.
"I am sick and tired of the critics who keep trying to belittle or humiliate Jay Powell, the Fed chief who … arguably did more to save us from a pandemic-induced depression than anyone else in the government. They act like Powell should've known omicron wouldn't require a lockdown," the "Mad Money" host said.
"Jay Powell measures his words. He wants to take the air out of everything I just mentioned and guess what, if you look at the stock market, sadly, for the bulls, or perhaps good for the economy and the country, he's winning," he added.
The S&P 500 gained 0.48% on Tuesday while the Dow Jones Industrial Average rose 0.20%. The Nasdaq Composite climbed 0.22%.
Tuesday's gains come as all eyes are on the Fed, which is expected to raise interest rates by 50 basis points Wednesday and lay out a roadmap to tighten its balance sheet.
Cramer earlier in the show highlighted groups of stocks "that need to turn around if we're ever going to get a sustainable rally and out of this miserable period." He cited housing, financial, e-commerce and semiconductor chip companies as some examples of stocks that are hard-hit despite having fundamentals that are in "fabulous shape."
"The endless cloud IPOs and the SPAC stocks were the most inflated part of our economy and they crushed the market in the end," he said, referring to initial public offerings and special purpose acquisition companies.
He added that while some stocks like financials did go up on Tuesday, it was short-term and shouldn't give investors hope that those stocks have entered a long-term rally.
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