NEW YORK (TheStreet) -- The White House has confirmed that Janet Yellen will be nominated to be chairwoman of the Federal Reserve.

TheStreet's Jim Cramer told Brittany Umar that Yellen was the best candidate for the job, but admitted he likes Stanley Fischer, too.

While equities initially rallied on the news, high-multiple stocks continued to get hit hard on Wednesday.

Cramer called it day two of a four-day weakness cycle for them. But he also suggested that there should be some stabilization in the broader market.

However, each time a politician gets on TV and comments, stocks will likely fall further.

Cramer said that he raised his default possibilities to a 20% likelihood from 10%, due to the complacency in Washington about avoiding a default.

If the U.S. stopped making its interest payments, China, which is a large holder of Treasuries, could begin to unwind its position.

"Thank heavens the Federal Reserve is in there to buy them," Cramer said, otherwise it could be a true catastrophe.

He concluded that every other country would be proud to have Yellen as its own and we should be thankful she will be the next head of the Fed.

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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