‘Unholy developments’: Jim Cramer warns interest rates are unlikely to drop — bolster your portfolio before a reckoning

‘Unholy developments’: Jim Cramer warns interest rates are unlikely to drop — bolster your portfolio before a reckoning Vawn Himmelsbach Wed, September 9, 2026 at 4:15 PM GMT+2 8 min read Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. Jim Cramer believes interest rates are unlikely to fall any time soon — and he places the blame on the U. S.

war with Iran. "I don't see how rates can go down now that we see Warsh as a serious practitioner," the host of CNBC's Mad Money recently posted on X, with "the president unable to stop the war, the allies in the region depending almost entirely on us, and oil stocks headed back up quickly. Unholy developments (1).

" Top Picks Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 — 6 ways to build wealth like a landlord without actually being one JPMorgan sees gold hitting $5,000/oz by Q4 — and savvy investors are protecting their wealth with a tax-advantaged Gold IRA. Get your free guide from Priority Gold The tax breaks in Trump's 'big beautiful bill' expire after 2028. Here are 4 moves to make before the window closes He's not alone.

As of Sept. 3, the market is pricing in a 50% chance of a rate hike at the next Federal Open Market Committee (FOMC) meeting this coming Sept. 15-16, according to the CME Group's FedWatch gauge (2).

It had been pricing in a higher probability of a hike until Federal Reserve governor Christopher Waller, in a Reuters interview, suggested that the Fed might want to allow more time for inflation to fall on its own before raising rates — and that he was inclined to hold rates steady at the next meeting (3). Still, even Waller is not advocating for a rate cut. Inflation remains elevated The reason the Fed is unlikely to lower rates is that year-over-year inflation remains stubbornly above 2% (4), as measured by the Personal Consumption Expenditures (PCE) Price Index — and the Fed's mandate is to keep inflation below this level.

Altering the target for the Federal Funds rate is one of the main tools the Fed uses to manage inflation. Eight times a year, FOMC meets to set the target range for this rate, at which banks can borrow or lend their excess reserves to one another overnight. This serves as the benchmark for many other interest rates in the economy, so raising this rate makes borrowing more expensive and saving more attractive.

The aim is to cool demand in the economy and ease pressure on prices. Though the current economic environment is not conducive to an easing of rates by the Fed, some market participants were concerned that Kevin Warsh, the newly installed Fed chairman, might not take the necessary actions to combat inflation in light of President Donald Trump's repeated calls for lower rates (5). Story Continues As Cramer suggests, Warsh eased some of these concerns when he spoke at a conference in Jackson Hole on Aug.

28, reiterating that inflation is broad-based across many goods and services and remains too high. He added that "price stability is not self-executing, nor is inflation necessarily mean-reverting — it is the Fed's job to deliver stable prices (6). " As Cramer points out, there's no end in sight to one of the drivers of inflation.

The war in Iran has raised global oil prices, which not only drives energy price inflation with each new surge, but also has an upward influence on PCE inflation for up to two years beyond the initial oil shock (7). This is because oil prices can fuel ongoing inflation in areas such as transportation, manufacturing and agriculture, as well as increase inflation expectations, which can cause companies to raise prices and workers to demand higher wages — both of which can, in turn, be inflationary (8). Read More: Millionaires under 43 hold only 32% of their wealth in stocks.

Here's where their money is actually going Building an inflation-resistant portfolio Weathering this environment means tackling the risk of inflation, the risk of rising rates and the uncertainty that accompanies conflicting statements from Fed governors — along with every new attack by either the U. S. or Iran.

It's almost impossible to keep track of everything, let alone manage your finances and portfolio amid changing long-term outlooks. For these reasons, many people find it beneficial to consult with a financial advisor. A financial advisor can help crunch the numbers and build a plan that works amid these changing long-term outlooks.

But it's important to find the right fit. That's where a platform like Advisor. com comes in, which does the heavy lifting for you.

The platform vets advisors based on track record, client ratios and regulatory background. Plus, its network of advisors is comprised of fiduciaries, which means they're legally required to act in your best interests. To use the platform, enter your finances and goals, and Advisor.

com's AI-powered matching tool will connect you with a qualified expert best suited for your needs. Once you find a match, Advisor. com lets you set up a free initial consultation , with no obligation to hire, to see if they're the right fit for you.

Taking the guesswork out of investments If you decide that you'd prefer to forgo an advisor and invest on your own, you'll still need news, analysis and investment recommendations. A stock-picking service can help by providing expert analysis and educational resources to inform your decisions. For example, Moby offers expert research and recommendations to help you identify strong, long-term investments backed by advice from former hedge fund analysts.

In four years, across almost 400 stock picks, their recommendations have beaten the S&P 500 by almost 12% on average. According to Moby, its team spends hundreds of hours sifting through financial news and data to provide stock and crypto reports delivered straight to you . Their research keeps you in the loop on market shifts, and can help reduce the guesswork behind choosing stocks and ETFs.

Their reports are easy to understand for beginners, so you can become a smarter investor in just five minutes . Consider gold for its tendency to resist inflation Regardless of how you choose to manage your investments, you may want to consider alternative investments that have been shown to resist inflation and rocky markets. Gold and silver have historically served as inflation shields, maintaining purchasing power during periods of elevated inflation and currency weakness.

Plus, they add true diversification to your portfolio because they behave differently than stocks and bonds, particularly during periods of market stress when traditional diversification breaks down. As tangible assets, metals are not dependent on earnings, debt issuance or financial leverage. And gold and silver have historically attracted demand during financial and geopolitical instability.

One way to invest in gold that also provides tax advantages is to open a gold IRA with the help of Priority Gold . Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold — making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainty. You can get a free information guide that includes details on how to get up to $10,000 in free silver on qualifying purchases.

Set it and forget it to take advantage of compound interest Of course, investments are only part of your financial picture. Getting your finances in order also means having a clear picture of where your money's actually going. That starts with the basics — budgeting and tracking your spending.

This is even more important during periods of elevated inflation, when your dollar doesn't stretch as far. One way to limit overspending and overborrowing is to resist indulgences. But that's easier said than done.

A survey by Clever Real Estate found that 74% of those surveyed reported a spending problem, with 55% admitting they often spend recklessly (9). If you're one of those people who find it difficult to stop overindulging, you can start by building savings habits into everyday spending — and there's technology that can help. With Acorns , for example, you can automatically invest spare change from your everyday purchases into a diversified portfolio of ETFs managed by experts at investment firms like Vanguard and BlackRock.

For instance, if you buy a donut for $3. 25, Acorns will round up the purchase to $4 and invest the change in a smart investment portfolio. If you sign up today, you can get a $20 bonus investment .

You might not have much control over inflation. But there are tools and strategies that can help you stay on track with your financial goals — regardless of whether rates fall or rise. What To Read Next A single line on your car insurance policy could be inflating your premium by up to 30% — here's what to change Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake.

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Article Sources We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines . X ( 1 ); CME Group ( 2 ); CNBC ( 3 ); U.

S. Federal Reserve ( 4 ), ( 6 ), ( 7 ); Morningstar ( 5 ); Federal Reserve Bank of Kansas City ( 8 ); List With Clever ( 9 ) This article provides information only and should not be construed as advice. It is provided without warranty of any kind.