What’s the takeaway from Tuesday’s announcement from the Federal Reserve?
“They’re not in the way,” Cramer said during Stop Trading!, meaning the central bank is doing whatever it can to promote an economic recovery.
The Fed kept interest rates at their already low level of between zero and 0.25 percent, Reuters reported, promising again to keep them there for an extended period. Also, the Fed will reinvest principal payments from its mortgage bonds into long-term Treasurys “to help support the economic recovery in a context of price stability,” Reuters quoted from the Fed’s statement.
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These actions proved that Fed Chairman Ben Bernanke “is not the problem,” Cramer said. “It’s a Congress” focused on legislation that “cuts profitability.” Bernanke is “on the side of the good guys.”
The “Fed said good things,” Cramer said. “Buy.”
In stocks, Cramer endorsed BlackRock Chief Equity Strategist Bob Doll’s buy call on Intel under $20. While there has been some concern from analysts about falling PC demand, the Mad Money host said investors should be “kind of OK” with INTC as long as the company doesn’t preannounce a shortfall within the next two weeks.
Also, both Magna International and Lear reported “monster” quarters, as did Scotts Miracle-Gro.
“I cannot believe how good that quarter was,” Cramer said of Scotts.
When this story published, Cramer’s charitable trust owned Intel.
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