Phew! Jim Cramer breathed a sigh of relief when he saw that the Fed actually gets it. The Fed made it clear that it recognized that if there is no inflation, a world of uncertainty and no real risk in keeping rates low—then rates should stay low.
That was exactly why markets initially greeted the decision with a rally and applause before the averages pulled back later in the day when investors rang the register. Cramer expected to see a selloff regardless of what the decision was, partially because the market had run up so much in anticipation of the event.
If the Fed had decided to raise rates, Cramer wouldn't have been surprised if the Dow took a nosedive down 500 points in a heartbeat. The dollar would have soared, emerging markets would have plunged and China would have cratered all because it was "time" for a rate hike.
"We have to ask ourselves, does it make sense to create turmoil because of an amorphous belief that inflation lurks around the corner and there is not ever going to be a good time for tightening, so why not just tighten anyway?" the "Mad Money" host asked.