The banking crisis fights inflation for Powell and the Fed

CNBC’s Jim Cramer said Thursday that the Federal Reserve no longer needs action to tame inflation — and that’s because of the banking crisis.

Cramer said 10 days ago that investors expected a possible 50 basis point rate hike from the Fed based on Chairman Jerome Powell’s latest response to January inflation data and the strong labor market.

Powell warned that if inflation remains strong, he expected interest rates to go “higher than previously expected” and possibly faster than a quarter of a point at a time.

A 50 basis point rate hike appeared to be on the way until Silicon Valley Bank collapsed, Cramer said.

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