Federal Reserve Chairman Jerome Powell just “blinked” on interest rates, said CNBC’s Jim Cramer , shortly after the prepared remarks from Powell’s Wednesday address were released.
Stocks ripped strongly higher on news that Powell would say in his remarks to the Economic Club of New York that rates are ‘just below’ neutral, a sharp turn from his Oct. 3 comments that rates were a long way from neutral.
“Powell sees the global slowdown and knows that it could hurt us,” Cramer said in a tweet as the Fed chief’s prepared remarks were being debated on CNBC’s “Fast Money Halftime Report” by host Scott Wapner and a panel of traders.
“Powell is concerned and knows when he does one he has to wait — very big change in view,” Cramer added.
Cramer has repeatedly blamed Powell for spooking the markets last month, saying central bankers need to recognize the economy is slowing and they can’t move rates to a preconceived notion of neutral.
“So glad [the] Fed did the work, made the calls and listened to… uh, well, me,” Cramer said in a tweet.
Powell has also been under repeated criticism from President Donald Trump, who told the Washington Post Tuesday he blamed the Fed’s policies for the recent market declines and GM’s plan to cut production at several U.S. plants.
In a tweet, Cramer said the stock market leg higher Wednesday could be affirming his “view” on the Fed’s comments “and not others who think it is not a big deal.”
“Hey, Jay’s allowed to make rookie calls.. he made one.. The market plunged,” Cramer said. “Now he’s done the homework and he had to change his mind.”
