Did Cramer Call For an October Fed Rate Cut?

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On tonight’s MAD MONEY on CNBC, Jim Cramer said the FOMC meeting today was good after he considers it and was actually reassuring for 3 reasons: It is good to hear the economy hasn’t fallen apart, good to hear no new news, and the statement today showed that the Fed has at least gotten out of the clueless phase.  Cramer said this let’s the FOMC look at a potential rate cut potentially in October rather than the Fed keeping the bias the way they had toward inflationary risks. 

At the next meeting he thinks inflation will be on the back-burner in September and then it could even consider a rate cut in October.  But Cramer said he thinks the financial lenders and the homebuilders may actually sell off again.  He’d use the strength today and yesterday to sell those before they go back down.  Cramer said to buy aerospace and defense, but he thinks that tech will be great from here after Cisco Systems (NASDAQ:CSCO) rocking good earnings conference call.

Jon C. Ogg
August 7, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.