CNBC's Jim Cramer on Thursday warned that soaring shipping costs due to troubles in the Red Sea won't help the U.S. tamp down inflation, telling investors they shouldn't bank on a lot of rate cuts from the Federal Reserve.
"If the last few years have taught us anything, it's that supply disruptions are the bane of the Fed's fight against inflation," he said.
In recent weeks, Yemen-based Houthis have attacked ships traveling through the Red Sea, one of the most important global shipping routes.
As a result, many major shipping companies are sending their vessels on lengthy and expensive detours, causing freight prices to skyrocket.
And with hotter-than-expected figures for December's consumer price index and retail sales, Cramer argued inflation could already be on the rise.
Persons:
CNBC's Jim Cramer, freight's, Cramer, they're
Organizations:
Federal Reserve, FedEx, Canadian, Canadian Pacific Kansas City
Locations:
Yemen, Canadian Pacific Kansas