gobi123

  A customer shops at at a grocery store on February 10, 2022 in Miami, Florida. The Labor Department announced that consumer prices jumped 7.5% last month compared with 12 months earlier, the steepest year-over-year increase since February 1982. Joe Raedle | Getty Images The view that higher interest rates help stamp out inflation is essentially an article of faith, based on long-held economic gospel of supply and demand. But how does it really work? And will it work this time around, when bloated prices seem at least partially beyond the reach of conventional monetary policy? It is this dilemma that has Wall Street confused and markets volatile. In normal times, the Federal Reserve is seen as the cavalry coming into quell soaring prices. But this time, the central bank is going to need some help. “Can the Fed bring down inflation on their own? I think the answer is ‘no,’” said Jim Baird, chief investment officer at Plante Moran Financial Advisors. “They certainly can help rein in the

CNBC’s Jim Cramer on Wednesday warned investors against selling off all their holdings, even as the markets continue to roil. “No matter how scared you get, most people aren’t nimble enough to get out of this market and then get back in again at a good price. That’s why it’s a mistake to sell everything even as the market’s gotten more difficult,” the “ Mad Money ” host said. The Dow Jones Industrial Average slid 0.42%  on Wednesday . The S&P 500 tumbled 0.97% while the Nasdaq Composite fell 2.22%. Cramer highlighted several points to argue that investors shouldn’t feel pressured to empty their portfolios: There is no “grave systemic risk to the economy or the country, save the possibility of nuclear war,” he said. Even if the  Federal Reserve  raises interest rates dramatically, which could negatively affect people’s assets, homes and other properties, “remember that most people don’t own any of those,” Cramer said. The host also noted that even if an investor plans to sell everyt