Cramer warns investors that Powell won’t go easy on stocks: ‘The Fed is not your friend’

CNBC’s Jim Cramer on Thursday said that investors shouldn’t expect the Federal Reserve to go easy on the economy because the market is suffering.

“Investors have to learn that the Fed is not your friend, it’s not your pal — if anything, it’s your enemy, at least until [Chair] Jay Powell finally beats inflation,” he said.

Stocks fell on Thursday after fresh data showed November retail sales fell more than expected.

Also dragging the market down were hawkish comments from the Federal Reserve on Wednesday. Powell signaled at the central bank’s post-meeting news conference that rate hikes will continue through next year.

“Powell could not have been more clear that … he’s not just trying to stabilize prices at these levels, he wants to roll back the price increases from the last couple of years,” Cramer said.

He reminded investors that the central bank’s main mission is to tamp down inflation and that it plans to increase rates until prices are down significantly.

Adding to the unlikelihood of the Fed pivoting anytime soon is its lack of sympathy for investors’ struggles, according to Cramer.

“While [Powell’s] not explicitly trying to send stocks lower, he’s certainly not going to shed any tears over it. If anything, lower stock prices are a win for the Fed,” he said.