Jim Cramer: The Fed Was Wrong in 2007, the Fed Could Be Wrong Again

Jim Cramer breaks down what he's looking for in the Fed's decision.
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Jim Cramer is calling for a massive move in either direction after the Federal Reserve releases its decision.

In his Real Money column Wednesday, Dec. 19, Cramer called for a 500 point move in either direction based on the Fed's decision. 

"First, the Fed could hike the Fed funds rate and stick by its assertion that it still has more to do, because of wage inflation and full employment. That's disastrous -- and the bear would go on a rampage as surely as if the bulls had honey smeared all over their faces," Cramer wrote in his column.

"Second, the Fed could hike and then say it wants to wait to see what the hikes have done. It also can cite the collapse in oil -- down a gigantic near $4 on Wednesday -- as a reason to be on hold. Is oil going down because the economy is collapsing?" He continued. "It is sure worth finding out before more braking of the economy. This rationality would be viewed as good news, especially because it would indicate that the Fed is off the nonsensical and dangerous autopilot, an autopilot that would be set for a crash landing."