‘I’m now nervous. I’m more nervous than I was before.’
That’s CNBC “Mad Money” host Jim Cramer talking about his post-Fed-rate-cut mood during Tuesday’s downturn in the stock market.
The Federal Reserve, in a rare inter-meeting move, cut its benchmark interest rate by a half percentage point to a range of 1%-1.25%.
“The fundamentals of the U.S. economy remain strong,” the Fed said. “However, the coronavirus poses evolving risks to economic activity.”
At last check, the Dow Jones Industrial Average DJIA, -1.84% was off almost 300 points while the S&P 500 SPX, -1.57% and Nasdaq Composite COMP, -1.50% were also moving lower in extremely volatile trading.
“It’s great that the Federal Reserve recognizes that there’s going to be weakness, but it makes me feel, wow, the weakness must be much more than I thought,” Cramer said, adding that the rate cut doesn’t exactly ease coronavirus fears.
“If you got something that allowed you to get out of the hospital, if we had a vaccine, anything, then you won’t need this rate cut,” Cramer said. “The more important thing is that we need people to be able to stay at work.”
Watch the segment: