With the Federal Reserve making a monumental move to raise interest rates for the first time in nine years, Jim Cramer breathed a sigh of relief as the market rallied in response.
So, that was it?
Yes. The Fed basically said that it would raise rates very slowly, perhaps only four times next year and it could be less than that if the economy weakens. So, instead of the old days when the Fed would sequentially raise rates in lockstep, the Fed has decided to use common sense and see if the hikes do any damage first.
Cramer interpreted this action as the Fed acknowledging that things aren't perfect right now, and pretty much never are, but they look a heck of a lot better than they did when rates were knocked so low in the first place. It was a sign of confidence in the economy, rather than a "we have to do this, sorry."
"In other words, the economy more than deserves to get out of intensive care, and it might go to a regular hospital bed for a while and then go into rehab until it is totally healthy. Rehab being rate hikes spaced out over time, with some pain if we get too much gain," the "Mad Money" host said.