KEY POINTS
  • CNBC's Jim Cramer on Monday listed four reasons why the Federal Reserve can't stop tightening the economy just yet.
  • "This market's hostage to the Federal Reserve, and the Fed's not going to stop tightening until they see more evidence of real economic pain. Unfortunately, we're not there yet," he said.

CNBC's Jim Cramer on Monday listed four reasons why the Federal Reserve can't stop tightening the economy just yet.

  1. Not enough people are reentering the workforce. That makes it more difficult for the Fed to stamp out wage inflation.
  2. There's a mismatch between job openings and job seekers. While many engineers are needed to carry out the measures in the bipartisan infrastructure bill and Inflation Reduction Act, "we're tapped out of engineers," he said.
  3. There are too many people working in customer relations management, data analysis and advertising. The abundance of these workers means the enterprise software industry is "bloated" and more layoffs are likely coming.
  4. Too many new companies were created in the past two years. This has pushed wages higher, and it'll take time for all the capital to destruct as they struggle to stay in business, he said.

"This market's hostage to the Federal Reserve, and the Fed's not going to stop tightening until they see more evidence of real economic pain. Unfortunately, we're not there yet," he said.