The Federal Reserve met earlier this week and decided to leave interest rates unchanged.
Fed Chairman Jerome Powell said Wednesday that he didn't see a "strong case for moving" policy "in either direction" after the central bank kept the target range of the key Fed Funds rate unchanged at between 2.25% and 2.5%. He did, however, allude to the transitory nature of conditions that was keeping inflation below the Fed's 2% target rate, comments that investors interpreted as signaling an upward bias on rates by the latter part of 2019.
"What the Fed was doing basically is to say, look, we're in pretty good shape. I hated what happened to the stock market because what happened is that a blast of future selling came in and no one could really figure out why, but then they sold it down again. This is one of this new found question that I have just ahead of the Uber deal," said Jim Cramer. "It's just the market was very easy to knock down because here you had Powell basically saying, guys, it's the best of all possible worlds and people interpreted that negatively and some people even said, as I said in my Real Money piece that they expected him to cut because the president said cut in a tweet. There's a lot of of what I regard as being a market that is, and I see this periodically led by whoever trades next and then the camp followers come. So we had a big sell off that was unjustified."