- CNBC’s Jim Cramer said Wednesday that the Federal Reserve may need to take drastic action at next week’s meeting, which could be “fantastic” for your portfolio.
- However, it is still too early to say whether the Fed’s measures will outweigh the negative effects of the deepening banking crisis.
With all eyes on the banking sector, CNBC’s Jim Cramer said Wednesday that the Federal Reserve may need to take “desperate action” at next week’s meeting — which could be “fantastic” for your portfolio.
“This will be the most momentous meeting of the Fed in recent history because the next step is so important and we don’t know what it will be,” he said.
However, it is too early to say whether the Fed’s measures will outweigh the negative effects of the deepening banking crisis, Cramer said.
“We are close to the point where the Fed feels the need to take desperate measures that could be fantastic for your stocks for your portfolio,” Cramer said. “We just don’t know if it’s enough to outweigh the ill effects of the snowball banking crisis.”
A crisis has unfolded in the financial sector in recent days following the collapse of New York’s Silicon Valley Bank and Signature Bank, which failed to withstand a series of rate hikes by the Federal Reserve over the past year.
Shares fell Wednesday on fears the banking crisis could spread to Europe, with investors pondering the future of global bank Credit Suisse. The major averages recovered some ground in the afternoon after a Swiss regulator announced that the country’s central bank would provide Credit Suisse with liquidity if needed.