- CNBC’s Jim Cramer said Wednesday that the Federal Reserve may need to take drastic steps at a meeting next week, which could be “great” for your portfolio.
- However, it is too early to say whether the Fed’s moves will outweigh the negative effects of the growing banking crisis.
With all eyes on the banking sector, CNBC’s Jim Cramer said Wednesday that the Federal Reserve may need to take “desperate measures” at next week’s meeting — which could be “great” for your portfolio.
“This will be the most important Fed meeting in recent memory because the next step is very important, and we don’t know what it will be,” he said.
However, it is too early to say whether the Fed’s moves will outweigh the negative effects of the growing banking crisis, Kramer said.
“We’re getting close to the point where the Fed may feel the need to take desperate measures that could be great for your portfolio stocks,” Kramer said. “We just don’t know if that will be enough to overcome the bad of the escalating banking crisis.”
Over the past few days, a crisis has erupted in the financial sector in the wake of the collapse of Silicon Valley Bank and Signature Bank of New York, both of which failed to manage a string of interest rate hikes from the Federal Reserve over the past year.
Stocks fell on Wednesday amid fears of a banking crisis spreading to Europe, as investors pondered the future of the global bank Credit Suisse. The major averages regained some of their gains in the afternoon after a Swiss regulator announced that the country’s central bank would provide liquidity to Credit Suisse if needed.
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