CNBC’s Cramer on Fed Rate Cut: I’m ‘Nervous’ — Economy’s ‘Weakness Must Be Much More Than I Thought’

CNBC host Jim Cramer said Tuesday that the U.S. Federal Reserve announcement of a half-percentage point interest rate cut to calm investors concerned about the impact of coronavirus on the economy made him more “nervous.”

Cramer said, “Look at the stocks going up. It’s recession stocks people are saying, ‘You know what, I’m making a determination the Fed is worried, so I should be worried. Let’s go by soft goods, consumer package goods, buy things people horde.’ They aren’t going to take Caterpillar. It’s up a little bit because it’s in the Dow. This isn’t going to produce anything other than fear. We need to see, yes, the infection numbers and biologicals. That’s what we need to worry about.”

Host Rick Santelli said, “I’ll tell you what, I was as shocked as anybody, of course.”

He added, “The issue here is I’m not going to debate everybody out there listening and watching knows this was a mistake.”

Cramer said, “I just think it’s great the Federal Reserve recognizes there’s going to be weakness, but maybe—it makes me feel, wow the weakness must be much more than I thought. I’ve been trying to be bullish, but I can’t. This is like, wow, OK, 50 basis points I guess the claims are going to be bad. I guess we’re going to have a real slowdown here. I just wish we had some great doctors and great drug companies that can solve this. Take it back, add 50 I don’t care. I’m now nervous. I’m more nervous than I was before.”

He added, “I mean if we got a drug that got it, so we’re out of the hospital. I don’t care about 50 basis. They can raise rates 75 bases. This is about trying to get it, so this country doesn’t freeze up obviously, the Fed thinks it’s going to freeze up.”

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