The Federal Reserve may be heartless, but it’s not clueless, Cramer said tonight on Mad Money.
Cramer was hoping for a rate cut to alleviate pressure in the market, but he got barely a wink from Bernanke and company, who carefully acknowledged that the situation in the markets is less than stellar. Still, though, this subtle nod to the Street put the Fed on track for what Cramer thinks will be a rate cut in October.
“Today we learned that the Fed is no longer in denial,” Cramer said, “and that’s a pretty good thing to hear. When we heard that ‘the downside risks have increased somewhat,’ that was a good thing. It showed me they’re not nuts. When they told us that ‘credit conditions have become tighter,’ that was a great thing. You and I knew that, right?…and it’s good to know that the Fed knows. Bernanke may be an academic, but he’s clearly not a fool.”