Jim Cramer's Stop Trading! Fed Cred

The trader says investors should be pleased with the pause.
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Investors should be pleased the

Federal Reserve

has taken a pause in its rate-hike campaign, Jim Cramer said on

CNBC's

"Stop Trading!" segment Tuesday.

Cramer said that while the Fed has rarely been able to negotiate a soft landing after a long economic expansion, he believes Tuesday's decision to leave rates unchanged increases Fed chief Ben Bernanke's chances of doing so this year.

But the selloff in stocks Tuesday afternoon indicates that, for now at least, many investors are taking the opposite tack, Cramer said.

"Now a hard landing bet is being made," he said, pointing to rises in so-called defensive stocks like

Pepsi

(PEP) - Get Report

and

General Mills

(GIS) - Get Report

. "We're buying Cheerios for the recession," Cramer added, explaining the persistent strength in the cereal titan's shares in recent months.

Cramer, pointing to remarks once made by ex-Brocade chief Gregory Reyes, also noted the irony of Tuesday's blowup in

Brocade

(BRCD)

. While at Brocade, Reyes -- who last month was indicted in the stock-option backdating scandal -- castigated rival

McData

(MCDTA)

as a poorly run company that was "worst in show," Cramer said.

On Tuesday morning, Brocade unveiled a $713 million stock-swap merger with McData, sending McData shares up, but unleashing a 19% selloff in Brocade's own beaten-down stock. "I think it's funny," Cramer said.

At the time of publication, Cramer had no positions in stocks mentioned.

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