Continued job growth could help ward off a recession, Jim Cramer says

The CNBC’s gym Cramemer feels that a lot of pessimism can float around the wall street. He explained on Monday that, among other things, continuity of strong job growth, may overcome a recession this year.

“Will the tariff hurt? Yes. Will the prices be higher? Yes. What can happen? Absolutely,” he said. “But the recession revolves around employment, and still there are too many jobs as we have people to fill them.”

Fear of worrying recession about President Donald Trump’s widespread tariff hike is powerful. But Kramer claimed that the recession has not been given. They feel that companies are not willing to close a lot of employees as they may not be able to bring workers back when the circumstances improve.

It is getting derailed and the economy which is still building jobs continued. He feels that Friday’s labor report will be “quite strong”, which is very difficult to slip it at any time in a full-handed manner at any time. “

With steep tariff hikes – especially on China – investors are worried that companies will increase prices, which will reduce consumer spending. Kramer said that he is “ready to bet that the American consumer learns to live with low.” While some businesses may get hurt, they continue, consumers can just switch to retail vendors, just more budget -friendly, naming Costco And Wal-martTariff is a “government-transport supply shock,” he said, but said that supplies do not necessarily lead to recession.

“These two retail vendors have more market power than any two companies that I have ever seen,” Kramer said, “They can interact with their suppliers to offer low prices to offset tariffs including sugar.”

Sign up now Following every step in the market of Jim Craermer for CNBC Investing Club.

Disclaimer CNBC Investing Club has shares of costco.