CNBC's Jim Cramer on Wednesday warned investors that interest rates haven't peaked and won't begin to drop until inflation cools in three areas.
He said there won't be relief from rising interest rates until inflation cools for food, housing and wages — and we're not seeing the necessary slowdown yet.
"So far, we only have it from the retailers," Cramer said. "That's not enough."
He said B&G Foods believes food inflation is far from over and Hovnanian expects a strong spring selling season for housing. But there may be some relief from high wages in the event of larger scale firings and closings, he said, pointing to the Dutch Bros. downturn.
"Right now, we're still negative three for three," Cramer said. "I'll change my tune if we get more data showing that February was weak."
High inflation has persisted in 2023, with continued soaring prices in January, outpacing some economists' expectations. Inflation rose 0.5% that month and 6.4% over the past 12 months, according to the latest data from the Bureau of Labor and Statistics.
"Those who think that rates are peaking out right now seem too bullish to me," Cramer added. Before the market can rally, he said we need to see "more soft economic data" or the "bond bulls — or at least what's left of them — need to get wiped out."
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