Business

Buyers ought to keep heading in the right direction

CNBC’s Jim Cramer said Wednesday that investors will not need to make major changes to their strategy due to the closely watched press conference held by Federal Reserve Chairman Jerome Powell.

“You don’t have to do anything,” said the Mad Money host after analyzing Powell’s comments earlier in the day and the updated forecasts from the Fed’s political arm.

Cramer said he believed Wednesday’s decline in stocks, combined with new insights into the Fed’s mindset, could create opportunities for investors.

“I think you should just stay on track and maybe take advantage of this decline to buy some quality stocks, especially industrials, right into the teeth of a downturn,” said Cramer.

“With the Fed pulling itself out of the equation for at least six months, maybe longer, industrial companies have a lot more leeway,” he said, adding that he shares the same forecast for the technology sector.

The Federal Reserve’s Open Markets Committee left rates near zero on Wednesday, but central bank officials hinted that a hike could happen as early as 2023. In March, the FOMC expected interest rates to remain unchanged until at least 2024.

In general, Cramer Powell applauded for giving a “healthy” outlook on the US economic recovery as further coronavirus-era restrictions lift and activity picks up.

“Also the idea that Powell has to work out the game plan for the next two or three years right now is absurd,” said Cramer.

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