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Cramer says new AI technology cannot yet help reduce inflation – NBC New York

  • CNBC’s Jim Cramer said Monday that he is hopeful new artificial intelligence technology will lower costs, but that it won’t help lower interest rates in the short term.
  • “In the short term, it won’t have any impact on the things we’re concerned about and not in a time frame that’s important to the Fed,” he said.

CNBC’s Jim Cramer reminded investors Monday that much of the stock market currently depends on the Federal Reserve’s interest rate decisions, which are difficult to predict as inflation persists. He said he is hopeful that new artificial intelligence technology will help reduce costs, but emphasized that won’t happen anytime soon.

“We keep thinking that accelerated computing and generative AI will solve so many of our problems, and eventually they will, but the emphasis is on ‘eventually,’” he said. “In the short term, it won’t have any impact on the things we’re concerned about and not in a time frame that’s important to the Fed.”

For Cramer, AI will be a game changer. It has the potential to improve productivity and make items like groceries and medicine cheaper, helping the consumer’s balance sheet. But technology is not yet at a point where it can immediately solve high costs in sectors such as insurance, housing and clothing, he said.

This week brings new inflation data: the Producer Price Index on Tuesday and the Consumer Price Index on Wednesday. But because these numbers are difficult to get a handle on and they have run hotter than the Fed wants to see, Cramer suggested investors stick with stocks that aren’t as affected by rates.

“Right now, right now, everything is on the brink,” he said. “But what lies ahead of the rand? The answer is all kinds of inflation data that can push interest rates higher, making us feel like it’s too risky a time to invest in equities.”

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