Jim Cramer Says Fed Minutes Were Excuse to Sell
Stocks declined Wednesday, which followed the S&P 500 closed at a record high, after the Federal Reserve said the coronavirus pandemic would weigh heavily" on U.S. economic activity and the jobs market.
In the minutes from their meeting in late July, officials at the central bank “agreed that the ongoing public health crisis would weigh heavily on economic activity, employment, and inflation in the near term and was posing considerable risks to the economic outlook over the medium term.”
The central bank said it expected to maintain rates between a 0% and 0.25% until it's “confident that the economy had weathered recent events and was on track to achieve the committee’s maximum employment and price stability goals.”
The Fed emphasized the need for further fiscal policy support from Congress.
Democratic and Republican leaders have been hinting they are looking for ways to bridge the wide gap in their stalled coronavirus stimulus negotiations.
China's Commerce Ministry said Thursday that Beijing and Washington have agreed to hold a call soon to discuss the progress of their phase one trade agreement.
Jim Cramer said that the Fed really didn't disclose anything new as the central bank has been worried about the economy since the beginning of the pandemic. Cramer added that traders were simply looking for "an excuse to sell."