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Morning Bell With Jim Cramer: Watching the Fed and Meme Stocks

Jim Cramer shares his views on the meme stock movement and the Federal Reserve meeting.

Stock futures were mixed Tuesday as Wall Street awaited the start of the Federal Reserve meeting. Founder Jim Cramer shares his thoughts with Katherine Ross about the Federal Reserve's policy-setting meeting that begins Tuesday and about retail traders.

Meme Stock Traders: Tools of the Hedge Funds?

Cramer noted that retail traders are have become the tools "of the very people they hate."

"I don't mean to cast aspersions on people who are constantly casting aspersions on me," he said, "but the fact is the hedge funds are in there, doing what the meme people are. They're the big profiteers."

Cramer added that retail traders who think "take from the rich and give to the poor" are deluding themselves. He said that what these traders had when they started with GameStop  (GME) - Get Report and AMC Entertainment  (AMC) - Get Report was "terrific."

"But now there is no game plan," he continued. "Now it's, 'let's try to bust this short or bust that short.'"

Cramer said Wendy's  (WEN) - Get Report and Corsair  (CRSR) - Get Report are good examples of this, where both companies surged due to a meme rally.

"These are good companies," he said. "You have to understand that after the stocks go up, the shorts recognize that they don't have the buying powers to keep it up. So then they short Corsair at the end of day and they profit like you could have with Wendy's."

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In some degree, Cramer said, "the meme people are tools of rich people who have suits and who are baby boomers; the very people they hate."

"And they have to come up with a new game plan if they want to disenfranchise or take away the money off the people whom they are unwittingly working for," he said.

Federal Reserve: 'Monumental' Meeting?

Cramer then turned his attention to the Federal Reserve's policy-setting meeting that begins Tuesday.

He noted that investor Paul Tudor Jones had said "Wednesday's meeting with the Fed could be monumental."

"I don't think it will be," Cramer said, "but I also don't like to bet against Jones because he's been so smart and he also knows commodities and he is saying that if the Fed stays the course you could have a gigantic move in the inflation trade."

Cramer said the inflation trade involves, "but it's also many of the stocks we follow, which would be Nasdaq."

"I think I would be buying the Caterpillars  (CAT) - Get Report if you think he's going to be right," he said. "I just enjoy the idea that he's saying it's a monumental meeting as if maybe there could be a change. I don't there will be."