What the Fed doesn't mean for the market

CNBC host Jim Cramer said on Monday that the market is fervently hoping that the Fed pivot may not materialize yet.

What Happened: Cramer listed four jobs related data points to lend credence to his expectations of a higher interest rate environment in the near term.

Cramer said very few people are entering the workforce. He believes that this won't help reduce wage inflation.

Cramer highlighted the mismatch between job openings and job seekers. He said that there aren't many engineers available, even though they are required to carry out measures under the 2022 Inflation Reduction Act.

There were too many people working in the enterprise software industry, portending potential layoffs, according to Cramer.

How do I survive a Stock Market Crash?

The pace of creation of new companies has pushed up wages, Cramer said.

This market is a hostage to the Federal ReserveFederal Reserve, and the Fed is not going to stop tightening until they see more evidence of real economic pain. Cramer added that we are not there yet.

Why it is important that the November minutes of the November monetary policy meeting sent the market higher last week, with the S&P 500 Index breaking above the 200 day moving average for the first time in seven months.

The major indices have pulled back since then, due to lack of follow-through buying, as the visibility into the interest rate outlook remains poor.

The job market's state has a bearing on the market direction.

You have to figure out when people will come back to the workforce and when money-losing companies will let their workers go or go bankrupt, Cramer said.

According to Benzinga Pro data, the SPDR S&P 500 ETF Trust SPY, an exchange-traded fund tracking the S&P 500 Index, was up 0.06% to $399.81.

If The Fed Doesn't Pivot: Here's what needs to happen, Professor Jeremy Siegel says the 2023 Recession Odds are 'Virtually 100%'.