Jim Cramer believes excessive pessimism may be clouding Wall Street’s outlook, arguing that strong employment trends could prevent an economic downturn despite tariff concerns.
What Happened: “Will the tariffs hurt? Yes. Will prices go higher? Yes. Could there be shortages? Absolutely,” CNBC’s Cramer said Monday. “But recessions revolve around employment, and there are still so many more jobs than we have people to fill them.”
Recession fears have grown amid President Donald Trump‘s sweeping tariff hikes, especially those targeting China. However, Cramer maintains that companies are reluctant to lay off workers they might struggle to rehire when conditions improve.
“It’s difficult to derail an economy …