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Jim Cramer reacts to the Fed's 75 basis point interest rate hike - YouTube
Channel: CNBC Television
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let's begin with the markets guys and on
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track to erase that post-fed rally this
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is what the fed chair said yesterday
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about how far the fed must go to
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successfully combat inflation
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i think we'll know when we get there
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really i mean i honestly though that
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that would be you would have positive
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real rates i think and inflation coming
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down by then i think you'd have positive
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real rates across the curve
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um i think that that you know the
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neutral rate is pretty low these days
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so uh i i would think it would but you
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know what we're going to we're going to
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find that out empirically we're not
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we're not going to be completely model
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driven about this we're going to we're
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going to be looking at at this keeping
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our eyes open and reacting to incoming
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data both on financial conditions and on
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what's happening in the
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economy one of the more interesting
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points he made jim was that headline is
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what consumers feel and that's leading a
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lot of people to say oil is the key nat
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gas in europe today explains a lot yeah
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look that gas in europe is a function of
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that freeport facility that that
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yesterday that david talked about
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because that looks like it's going to be
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a longer outage by the way yeah
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end of the year potentially yeah end of
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the year for some not all of them i
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think a lot of us
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puzzle over the following
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how could there be such
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voracious furious buying in the last
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hour
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and then beginning at 4am
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remarkable unwind
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what happened
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who was wrong were the buyers wrong or
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the seller's gonna be wrong now i come
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back and say that there were a lot of
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people who were
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instantly saying you know what he means
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business 75
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and then the second thought people just
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said you know what if we parse it and he
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says well maybe 50 maybe somebody he
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never said what you really want which is
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look i will favor jobless
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i favor unemployment
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over inflation i want people to stop
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being able to job hop stop being able to
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get razors and get laid off now jake
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j-pal's not that kind of guy so that's a
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very hard thing for him to say so carl
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what i see when when he speaks is it
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troubles him to say what he has to do
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with his favorite cat uh capital over
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labor just troublesome and i think what
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a lot of people are thinking about is he
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can no longer be troubled what he has to
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just say is listen i got to go on all in
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people get fired all in layoffs and
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that's going to do it until we get some
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sort of resolution oil
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and some sort of resolution food and
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some sort of resolution supply chain he
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just was unwilling except for right at
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the end when he said a young couple
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should be more concerned he just he's
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got to bite the bullet well the the
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median year-end dot plot has gone from
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one nine to three four i mean they've
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they've gotten more aggressive well
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that's what i thought and that's why i
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thought that people bought
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and then
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there's just too many people who feel
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you know what the heck with the dot plot
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let's go all volcker uh i'm looking for
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a 94 scenario which is that there are
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multiple rate hikes and it works three
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to six and it works uh david i think
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there's a lot of people this morning
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who have remorse
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and say you know what we have to sell
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tech that's a whole other issue but we
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have to sell everything bonds stocks
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because he's a failed fed chief and i
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heard almost everyone this morning
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called him a fed a failed veggie
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really it's gone that far yes i think it
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has that there is this label being yes
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being appended to his tenure well i'm
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not buying that but you know i know
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you're not i know you're not
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um
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things turned this last night right i
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mean they're literally 4am
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which is europe right
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there's been a story
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that i've heard now a couple of times
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you know the swiss we pointed out
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raising
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rates do you know the swiss national
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bank owned 177 billion in u.s stocks
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yeah yeah including including a lot of
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tech stocks oh my god they're like tiger
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global
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no i don't you know they changed their
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language on a potential currency
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intervention hey david that's they
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dropped the one-sided commitment to
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guard against currency depreciation
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right the swiss have been very focused
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on keeping the franks strong
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but um
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but there is
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and will not we won't know but there is
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uh a question as to whether or not
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uh the swiss national bank
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um with that 177 billion in u.s stock uh
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may not proceed to start to sell some to
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keep the swiss franc stronger
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holy cow
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okay so let's say that by the way don't
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know no no but i've heard it now from
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three separate people this morning
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asking the question no but but what's
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interesting is is that the stocks that
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got hit the hardest between four and
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five a.m yeah were fine
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they were banging a couple semis i mean
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but isn't that the most obvious take a
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look at the swiss national banks 13.
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look at the ones you you isolated the
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ones that are most visible if you're you
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know you're not selling carvana if
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you're from you you didn't buy no you
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didn't buy airbnb they own a lot of
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apple this is what they own yeah it is
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david that makes so much sense don't
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know if it's it's again
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but the idea would be that you're
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actually selling to make sure you main
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you you keep the frank stronger well
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they sell whatever i have right but
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i don't know i'm not sure what's going
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on jen see you know carl
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when i was watching the sell-off and i
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said to myself okay so they're they're
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not selling walmart but by the way by
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raising rates you're already
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your currency is you know you're helping
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your currency so it's it's not clear to
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me exactly well they're likely to think
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that they're like they know what they're
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doing anymore than anybody else don't
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know anyway but i did the switchbacks i
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was puzzling over why these stocks the
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most name brand visible stocks you
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include intel there too and it was these
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were the name brand guys and then the
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rest of the market was not going down so
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i'm trying to think who is really
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unloading is someone painting the tape
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no not at 4am those guys are too lazy
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what it really is is there's an
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aggressive seller in the marketplace but
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i lacked
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anybody who could be that seller and you
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may have answered you may have answered
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the puzzle
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