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    Self-driving truck startup Kodiak Robotics wins $50 million deal to help develop driverless Army vehicles

    The company said it won a two-year, $49.9 million contract from the Defense Department to help develop automated combat vehicles for the U.S. Army.
    The vehicles will be tailored for reconnaissance, surveillance and other missions that would present a high risk to a human driver.
    The contract is part of the Army’s ongoing Robotic Combat Vehicle program.

    Kodiak Robotics truck in front of an IKEA store.
    Source: Kodiak Robotics

    Self-driving truck startup Kodiak Robotics said Tuesday that it won a two-year, $49.9 million contract from the U.S. Department of Defense to help develop automated combat vehicles for the U.S. Army.
    The company said the vehicles will be tailored for reconnaissance, surveillance and other missions that would present a high risk to a human driver.

    The contract was awarded by the DoD’s Defense Innovation Unit (DIU) and is part of the Army’s ongoing Robotic Combat Vehicle (RCV) program.
    “We are proud to have the opportunity to leverage our cutting-edge self-driving technology for defense applications, and believe our work with DIU and the U.S. Army will both help strengthen national security and hasten our path to commercial deployment,” Kodiak CEO Don Burnette said in a statement.
    DIU said it received 33 responses to its initial solicitation in October, and selected Kodiak and another vendor, development software provider Applied Intuition, after an extensive review process. Kodiak has been testing its autonomous trucks in Texas since 2019, and counts logistics giants Werner Enterprises and U.S. Xpress and Swedish home-goods giant IKEA among its pilot customers.
    “The commercial sector has invested heavily in this technology, and we are excited to see this in action by leveraging the self-driving technology that is working on American highways today,” said Lieutenant Colonel Chris Orlowski, a product manager with the RCV program.
    The award marks the latest development in the DoD’s Defense Advanced Research Projects Agency (DARPA) Grand Challenge self-driving competitions, which began in 2004.
    “There has been a revolution in the techniques and capabilities of uncrewed ground vehicles occurring in the private sector over the past two decades,” said Kevin O’Brien, technical director for DIU’s Autonomy Portfolio.

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    United CEO says business travel has ‘plateaued’ but revenue is still rising

    Business travel demand has “plateaued,” United Airlines CEO Scott Kirby told CNBC Tuesday.
    Revenue continues to rise thanks to strong demand and capacity constraints, he said.
    Kirby said the carrier isn’t seeing a recession in its data but forecast a “mild recession induced by the Fed.”

    United Airlines Boeing 787-9 Dreamliner landing in London Heathrow International airport in England, UK.
    Nicolas Economou | NurPhoto | Getty Images

    Business travel demand has “plateaued” but revenue continues to rise thanks to strong demand and capacity constraints, United Airlines CEO Scott Kirby told CNBC Tuesday.
    Major companies, many in tech, have announced plans to cut back on spending, like business travel, or even lay off workers. San Francisco is one of United’s major hubs, along with Newark, New Jersey, Houston, Washington D.C. and its home base of Chicago.

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    “It feels like business travel, and this probably is indicative of pre-recessionary kind of behavior, has plateaued even though our total revenues are still going up,” Kirby said in an interview with CNBC’s “Squawk Box.”

    Kirby said the carrier isn’t seeing a recession in its data but forecast a “mild recession induced by the Fed.”
    “If I didn’t watch CNBC in the morning … the word ‘recession’ wouldn’t be in my vocabulary, just looking at our data,” he said.
    In October, United forecast another profit for the last three months of the year thanks to strong demand. At the same time a lack of available aircraft and trained pilots have driven up airfare across the industry, helping return airlines to profitability.
    United’s Kirby reiterated that hybrid work models are shifting travel patterns to give workers that “have always had plenty of disposable income” the ability to travel since they’re not “tethered to their desks.”

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    Eddie Jones: England head coach sacked just nine months before 2023 Rugby World Cup

    Eddie Jones came under pressure after 2022 saw England return a losing record in a calendar year for first time since 2008.
    The Australian led England to three Six Nations titles during time in the role – including one Grand Slam – and a World Cup final after taking charge in late-2015.

    England Head Coach Eddie Jones.
    Alex Davidson – Rfu | The Rfu Collection | Getty Images

    Eddie Jones has been sacked as England head coach after seven years in charge, just nine months out from the 2023 Rugby World Cup.
    Jones’ exit, confirmed by the Rugby Football Union on Tuesday, comes following a dismal autumn series and leaves England searching for a successor in the knowledge their opening game at the next World Cup in France is against Argentina on September 9, 2023.

    England’s November campaign brought confirmation that they had endured their worst calendar year since 2008, as they posted a losing Test record for the first time since that year too: six losses, one draw, five wins.
    This autumn, England finished with a 27-13 defeat to South Africa. That came after suffering a first loss to Argentina at Twickenham for 16 years (and anywhere for 13 years), beating Japan, and conjuring up a 25-25 draw with New Zealand from a position of 25-6 behind going into the final 10 minutes.
    As sensational as that comeback was, though, reviewing the full Test reveals England’s performance was as poor as in the South Africa game, with their incredible three-try-salvo late on papering over all manner of cracks.
    The last two Six Nations campaigns in 2021 and 2022, when England finished fifth and third respectively after losing three Tests in each, prompted formal reviews from the RFU, both of which Jones survived.
    But the latest two-week review into England’s performance has led to his downfall.

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    In a statement released on Tuesday, the RFU said: “Following a review of the autumn, Eddie Jones has been dismissed from the position of England Men’s Head Coach.
    “The Rugby Football Union (RFU) will now conclude the long-term work it has been undertaking on coach succession planning with changes set to be announced in the near future.
    “In the interim, Richard Cockerill will take over the day to day running of the men’s performance team.”
    Sweeney: We are grateful to Eddie | Jones: I am pleased with my achievements
    RFU CEO Bill Sweeney expressed his gratitude for Jones’ work during his seven-year tenure, in which he boasted the highest “win ratio” of any England coach.
    “It is important to recognise the huge contribution Eddie has made to English rugby, winning three Six Nations Championships, one Grand Slam and taking us to a Rugby World Cup final,” said Sweeney.
    “He has the highest win ratio of any previous England head coach and has helped develop the leadership skills of many players and coaches.
    “I am grateful to Eddie for all he has done for England across many areas of the game and the professional way in which he has approached reviewing the performance of the team. He has provided the panel with astute insight and meaningful lessons that will support the team performance going forward.”
    Upon his sacking, Jones wished England well for the future.
    “I am pleased with much that we have achieved as an England team and I look forward to watching the team’s performance in the future,” said Jones.
    “Many of the players and I will no doubt keep in touch and I wish them all well in their future careers.”
    Speaking about the decision, RFU Chair, Tom Ilube said: “The independent review panel regularly updates board on its discussions and findings. We are fully supportive of its process and recommendations.”
    Jones’ England journey ends after worst year since 2008
    Jones came in as a highly-regarded head coach after the disaster that was England’s home 2015 World Cup pool stage exit, and led them to a Six Nations Grand Slam in 2016 and 3-0 series win in Australia that summer.
    Aside from their run to the World Cup final in 2019, though, they have never reached such heights under the Australian again.
    2017 saw sticky performances and a loss to Ireland en route to a title win, while 2018 proved an utter disaster, finishing fifth in the Six Nations after losses to Scotland, France, and Ireland at home, before losing a series in South Africa 2-1.
    They threw away a chance to win the 2019 Six Nations after defeat in Cardiff, and rounded it off with a farcical 38-38 draw at home to Scotland after being 31-0 ahead, while 2020 saw them completely outplayed by France – although that campaign did end with a third Six Nations title of Jones’ reign.
    Jones’ future has been under intense scrutiny ever since. In the aftermath of England’s defeat to South Africa in the 2019 Rugby World Cup final in Japan, the RFU set up an anonymous review panel, which has twice before been called upon to hold a series of meetings post-Test windows.
    The first came after England’s 2021 Six Nations display, when they finished fifth after defeats to Scotland, Wales and Ireland, and the second after their 2022 Six Nations performance, when three more defeats to Scotland, Ireland and France left them some way off title contention.
    Jones survived to remain in post on both occasions.
    The loss to South Africa, however, in their final autumn Test confirmed England had endured their worst calendar year for 14 years. One more defeat can be added to that rotten record as well in the shape of England’s embarrassing 52-21 loss to a 14-man Barbarians side at Twickenham in June.
    It left Jones and co to look back over an autumn series with very few positives, and one which prompted yet another RFU review.
    Were it not for the last World Cup, it is highly likely Jones would have exited long ago. Therein lay the reason Jones continued to mention the next one perhaps.

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    Renewables to overtake coal and become world’s biggest source of electricity generation by 2025, IEA says

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    “Renewables [will] become the largest source of global electricity generation by early 2025, surpassing coal,” the IEA said in its Renewables 2022 report.
    The analysis comes at a time of huge disruption within global energy markets following Russia’s invasion of Ukraine in February.
    IEA chief Fatih Birol said the global energy crisis had kicked renewables “into an extraordinary new phase of even faster growth as countries seek to capitalise on their energy security benefits.”

    Wind turbines in the Netherlands. A report from the International Energy Agency “expects renewables to become the primary energy source for electricity generation globally in the next three years, overtaking coal.”
    Mischa Keijser | Image Source | Getty Images

    Renewables are on course to overtake coal and become the planet’s biggest source of electricity generation by the middle of this decade, according to the International Energy Agency.
    The IEA’s Renewables 2022 report, published Tuesday, predicts a major shift within the world’s electricity mix at a time of significant volatility and geopolitical tension.

    “The first truly global energy crisis, triggered by Russia’s invasion of Ukraine, has sparked unprecedented momentum for renewables,” it said.
    “Renewables [will] become the largest source of global electricity generation by early 2025, surpassing coal,” it added.
    According to its “main-case forecast,” the IEA expects renewables to account for nearly 40% of worldwide electricity output in 2027, coinciding with a fall in the share of coal, natural gas and nuclear generation.
    The analysis comes at a time of huge disruption within global energy markets following Russia’s invasion of Ukraine in February.
    The Kremlin was the biggest supplier of both natural gas and petroleum oils to the EU in 2021, according to Eurostat. However, gas exports from Russia to the European Union have slid this year, as member states sought to drain the Kremlin’s war chest.

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    As such, major European economies have been attempting to shore up supplies from alternative sources for the colder months ahead — and beyond.
    In a statement issued alongside its report, the IEA highlighted the consequences of the current geopolitical situation.
    “The global energy crisis is driving a sharp acceleration in installations of renewable power, with total capacity growth worldwide set to almost double in the next five years,” it said.
    “Energy security concerns caused by Russia’s invasion of Ukraine have motivated countries to increasingly turn to renewables such as solar and wind to reduce reliance on imported fossil fuels, whose prices have spiked dramatically,” it added.
    In its largest-ever upward revision to its renewable power forecast, the IEA now expects the world’s renewable capacity to surge by nearly 2,400 gigawatts between 2022 and 2027 — the same amount as the “entire installed power capacity of China today.”

    Wind and solar surge ahead

    The IEA expects electricity stemming from wind and solar photovoltaic (which converts sunlight directly into electricity) to supply nearly 20% of the planet’s power generation in 2027.
    “These variable technologies account for 80% of global renewable generation increase over the forecast period, which will require additional sources of power system flexibility,” it added.
    However, the IEA expects growth in geothermal, bioenergy, hydropower and concentrated solar power to stay “limited despite their critical role in integrating wind and solar PV into global electricity systems.”

    Read more about electric vehicles from CNBC Pro

    Fatih Birol, the IEA’s executive director, said the global energy crisis had kicked renewables “into an extraordinary new phase of even faster growth as countries seek to capitalise on their energy security benefits.”
    “The world is set to add as much renewable power in the next 5 years as it did in the previous 20 years,” Birol said.
    The IEA chief added that the continued acceleration of renewables was “critical” to keeping “the door open to limiting global warming to 1.5 °C.”
    The 1.5 degree target is a reference to 2015′s Paris Agreement, a landmark accord that aims to “limit global warming to well below 2, preferably to 1.5 degrees Celsius, compared to pre-industrial levels.”
    Cutting human-made carbon dioxide emissions to net-zero by 2050 is seen as crucial when it comes to meeting the 1.5 degrees Celsius target.
    Earlier this year, a report from the International Energy Agency said clean energy investment could be on course to exceed $2 trillion per year by 2030, an increase of over 50% compared to today. More

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    What to watch for as J&J gets ready to split into two separate companies next year

    Johnson & Johnson (JNJ) is preparing next year to spin off its consumer health unit into a publicly traded company separate from its pharmaceutical and medical technology operations. Ahead of the split, Morgan Stanley put out a research note, highlighting some of the debates in the market over the move, which would result in a consumer brands company called Kenvue and a pharma company with the J & J moniker. For the Club, we consider Johnson & Johnson one of our 10 core holdings and believe the separation will sharpen the focus at both companies, allowing management at each to do what’s best for their respective businesses, unlocking more shareholder value without worrying about the impact on the whole behemoth. During Monday’s “Morning Meeting” for members, Jim Cramer said that J & J has the “best balance sheet in America.” Morgan Stanley’s note In a research note last week, Morgan Stanley posed a series of thought-provoking questions about the pending split and what the business might look like afterward. The analysts asked whether J & Js long-term 2025 goal of $60 billion in pharmaceutical sales might be under threat. The concern is around expected slower growth for a key drug, Stelara — an immunosuppressive treatment for conditions including plaque psoriasis, psoriatic arthritis, Crohn’s disease and ulcerative colitis — due to competition from generics. To be fair, this isn’t the first time the company issued a medium-term pharmaceutical revenue target that the Wall Street consensus did not initially believe in. As Morgan Stanley pointed out, back in May 2019 J & J provided 2023 guidance of over $50 billion for its pharma business. The consensus at the time this was issued was for sales of $46 billion — but if you fast forward to today, the consensus is at $54.4 billion for next year. So, this is a recent example of management providing a conservative forecast that the company is now on track to exceed. Analysts at Morgan Stanley also reviewed what growth will look like in J & J’s medical technology division, following its recent announcement to acquire heart pump maker Abiomed (ABMD), along with an updated analysis of what the consumer health business could be worth in the future. The results of their sum-of-the-parts (SOTP) analysis: “Each of the company’s segments has a similar growth outlook to a peer group average.” Analysts project J & J’s combined pharma and medical technology units to be valued at about $152 a share and consumer health at about $26 a share for consumer health, indicating J & J stock is trading right around fair value. Morgan Stanley raised its price target on J & J stock to $178 per share from $170, assigning no premium at all based on Friday’s close, and keeping its equal weight, or hold, rating. Look back, look ahead Johnson & Johnson currently operates three main units under one corporation umbrella: consumer health, which includes household names such as Band-Aids and baby shampoo; pharmaceuticals; and medical technology, which includes medical devices, surgical solutions, and vision. A little over a year ago , J & J announced plans to spin off its consumer products unit, forming two separate publicly traded companies. The standalone consumer company, Kenvue, will be led by J & J executive Thibaut Mongon. The pharmaceuticals and medical technology company will keep the J & J name and CEO Joaquin Duato will remain at the helm. Each segment is very profitable, but the consumer division has lagged behind the other units because it’s a slower-growing industry and also accounts for a smaller part of the overall business. However, once the consumer segment breaks off, J & J said both companies will have strong capital positions, significant cash flow, durable balance sheets, and an unchanged dividend. Pharmaceuticals Morgan Stanley analysts note Stelara will face biosimilar competition beginning in 2023 when it loses its patent protection, cutting into market share. This information about the threat of generics isn’t new. What’s up for debate is how fast the pace of erosion will be. Morgan Stanley estimates revenue from Stelara sales will decelerate in the coming years, modeling $10.2 billion in sales in 2023; $6.5 billion in 2024; and $4.6 billion in 2025. There is a silver lining, though, to Stelara losing sales. Johnson & Johnson hopes to convert many of its Stelara patients to Tremfya, another psoriasis-approved treatment that is also currently in trials for inflammatory bowel disease (IBD). “Tremfya is capable of replacing a majority of Stelara sales in the outer years,” Morgan Stanley said, modeling accelerating Tremfya sales in the coming years of $2.8 billion in 2022; $5.7 billion in 2025; and $9.2 billion by 2030. Together, Stelara and Tremfya could reach more than $12 billion in sales by 2030, the analysis showed. Moreover, J & J has an existing diverse portfolio of profitable medicines and a pipeline of new pharma products that have promise to deliver global growth. The company’s approved and pending treatments for blood cancer and multiple myeloma are “underappreciated,” Morgan Stanley said. The analysts added that the multiple myeloma market will grow to about $33 billion in 2030 — and by that time, J & J’s therapies could take more than 80% of that market share. A few promising pipeline products were called out in J & J’s post-earnings conference call back in October, including (1) Milvexian, in partnership with Bristol-Myers Squibb (BMY), to treat and prevent thrombosis, (2) an amivantamab and lazertinib combination for non-small cell lung cancer, (3) auto-antibody asset nipocalimab, and (4) carvykti to treat pipeline multiple myeloma. As part of their thesis, Morgan Stanley ranks J & J’s pharma business as the largest segment with the highest margin. It will represent about 66% of the total business in 2023 after the consumer business separates. Medical technology The Morgan Stanley report said growth at J & J’s medical technology business hinges on progress in the underdeveloped robotics market. According to projections from J & J and rival Medtronic (MDT), the robotics market captures a low 2% to 3% of global procedures. J & J has been making progress to stay ahead of the curve, including its agreement to acquire Abiomed, a provider of cardiovascular medical technology, to strengthen its position as it enters higher growth markets. According to data from Visible Alpha, total J & J revenue from its combined pharma and medical technology businesses can grow 1% to 2% following the Abiomed acquisition and could expand operating margins to 32.3% by 2027. Consumer health J & J’s consumer segment currently accounts for 16% of the overall business, a smaller allocation compared to pharma’s 55% and medical technology’s 29%. The consumer segment generates billions in sales every year, but its growth has also been weighed down of late by supply chain disruptions, inflationary pressures and higher input costs. While these factors are improving, management expects them to linger into 2023, according to commentary on the company’s third-quarter earnings call in October. Johnson & Johnson is still working through the separation plans and will make further announcements in 2023 on what business strategies for its consumer health business will look like. Additionally, as Morgan Stanley sees it, ongoing litigation related to J & J’s talc baby powder allegedly being “associated with an increased risk of cancer or asbestos-related disease” is seen as an overhang to the stock. However, the analysts cite a strong balance sheet as limiting the associated risk. Bottom line J & J is a high-quality health-care franchise with three strong business segments. We believe the long-awaited split of its slower-growing consumer business from its pharma and medical technology businesses represents a strong long-term growth opportunity for all segments. By strategically streamlining each segment and focusing on targeted investments, we believe J & J can better navigate different industry trends to meet the needs of its customers and patients. However, we do think it’s important for J & J to make investors more confident that it can reach the key $60 billion pharma revenue goal by 2025. As we see it, if the business continues to see growth from its diverse pharma product pipeline, sees progress in its medical technology unit and consumer health accelerates growth through tactical bolt-on acquisitions in the future, J & J stock could trade at a higher multiple. In an economic slowdown, J & J is a solid name to own that can outperform the broader market. The stock is up 4.5% for the year while the S & P 500 has dropped 14.5% over the same period. We also like that J & J has consistently raised its dividend. While the company spends to innovate through its research and development initiatives and strategic acquisitions, it has a pristine balance sheet and strong free cash flow. We rate J & J a 1 for the Club , meaning we would buy the stock at current levels given it aligns with our strategy. (Jim Cramer’s Charitable Trust is long JNJ. See here for a full list of the stocks.) — CNBC’s Jeff Marks and M atthew J. Belvedere contributed to this report. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

    Johnson & Johnson products for sale in New York.
    Scott Mlyn | CNBC

    Johnson & Johnson (JNJ) is preparing next year to spin off its consumer health unit into a publicly traded company separate from its pharmaceutical and medical technology operations. Ahead of the split, Morgan Stanley put out a research note, highlighting some of the debates in the market over the move, which would result in a consumer brands company called Kenvue and a pharma company with the J&J moniker. More

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    Jim Cramer urges investors to exit crypto – ‘it’s never too late to sell’

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    CNBC’s Jim Cramer on Monday told investors that they still have time to sell their cryptocurrency holdings.
    “It’s never too late to sell an awful position, and that’s what you have if you own these so-called digital assets,” he said.

    CNBC’s Jim Cramer on Monday told investors that they still have time to sell their cryptocurrency holdings.
    “You can’t just beat yourself up and say, ‘hey, it’s too late to sell.’ The truth is, it’s never too late to sell an awful position, and that’s what you have if you own these so-called digital assets,” he said.

    The collapse of FTX, the bankrupt cryptocurrency exchange that was worth $32 billion at its peak, has thrown the crypto space under intense scrutiny and spurred mounting losses in a market that has seen digital assets get pummeled by the Federal Reserve’s interest rate hikes.
    Cramer, who has warned against staying in speculative assets while the Fed continues to tighten the economy, reiterated his argument and said that investors shouldn’t be fooled by some coins’ inflated market capitalization. 
    He added that he expects more marginal names including XRP, dogecoin, Cardano and Polygon to fall much further, possibly to zero.
    “Tether, a so-called stablecoin that’s supposed to be kinda-sorta pegged to the dollar, still has a $65 billion market cap,” he said, adding, “There’s still a whole industry of crypto boosters trying desperately to keep all of these things up in the air — not too different from what happened with bad stocks during the dotcom collapse.”

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    Cramer’s lightning round: I can’t recommend Penn Entertainment right now

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    It’s that time again! “Mad Money” host Jim Cramer rings the lightning round bell, which means he’s giving his answers to callers’ stock questions at rapid speed.

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    Penn Entertainment Inc: “Everybody’s in this darn business. … I do like Penn. They’re good guys, but I cant recommend the stock right now.”

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    Symbotic Inc: “They’re a money-losing SPAC. We’re not recommending any money losers.”

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    Tilray Brands Inc: “They and Canopy, if you want to own them, you can own either one. I’m not going to fight you on it.”

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    PagerDuty Inc: “[CEO Jennifer Tejada] put up a great number. … But this segment is so hated it just didn’t matter.”

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    CME Group Inc: “Winner, winner, chicken dinner. … I think it’s terrific.”

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    The Fed can’t stop raising interest rates due to these 4 factors, Jim Cramer says

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    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.

    Not enough people are reentering the workforce. That makes it more difficult for the Fed to stamp out wage inflation.
    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.
    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.
    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.

    The major indexes gained overall last week after Fed Chair Jerome Powell indicated the central bank could ease its pace of increases in December, though a strong labor report on Friday disrupted stocks’ ascent. Stocks fell Monday on investor fears that policymakers could steer the economy into a recession. 
    Cramer attributed the market’s volatility to how difficult it is to predict how the central bank will continue its fight against inflation.
    “Gaming out the Fed’s next move is more of an art than a science,” he said, adding, “You’ve got to figure out when people will start coming back to the workforce and when money-losing companies will let their workers go or simply go bankrupt.”

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