‘I’m Now Nervous’: CNBC’s Jim Cramer Predicts Fed’s Drastic Rate Cut Will Stoke Investor ‘Fear’ Over Coronavirus
On Tuesday morning, the Fed announced a half-point rate cut, with investors worried about the impact of coronavirus. But in the eyes of one prominent market observer, the drastic measure intended to calm Wall Street may actually stoke fear.
Appearing Tuesday morning on CNBC, analyst Jim Cramer said that Fed chair Jay Powell’s powers to calm the market are limited, and that ultimately, the issue comes down to whether people are able to go about their business as normal despite concerns over the virus.
“It’s terrific Jay is on board,” Cramer said. “He can do everything he can but in the end why go out.
Cramer went on to say that he’d previously been optimistic, despite the recent Dow freefall. But the Fed’s move has caused him to adopt a more cautious posture.
“It makes me feel, wow, the weakness must be much more than I thought,” Cramer said. “And I’ve been trying to be bullish, but I can’t.”
He added, “I’m now nervous. I’m more nervous than I was before.”
Watch above, via CNBC.
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