from said article
Fed's interest rate hike
The
from said article
Fed's interest rate hike
The horrendous stock market action has not stopped and China keeps causing trouble for everyone. US manufacturing PMI has expanded at the slowest pace in 2 years which means there is no way the economy can bear a rate hike. "I recognize that there is no good time to raise rates, but this would be a particularly bad time to raise rates," said Cramer.
What worries Cramer is that the FOMC just looks at employment and car sales and thinks that the US is ready for a hike. "Just getting it over with" is not the way to get through anything. "The Fed's job of slowing down the U.S. economy when it gets too hot is already being done by the global economic slowdown, and they don't have to make things so bad that it impacts here too," said Cramer.
The government is not creating more jobs and hence they are not in a position to deal with a slowdown. Housing starts have not returned to pre-recession levels and beef and chicken prices are going higher too, which is beyond the control of the Fed. "I haven't heard a compelling argument yet, and otherwise let's just say that tightening in an obvious bear market like we have leaves me a little cold," said Cramer.
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