What did the Federal Reserve do recently regarding interest rates?

The Federal Reserve recently cut its benchmark borrowing rate by 25 basis points.

Which stocks does Jim Cramer recommend after the Fed's rate cut?

Jim Cramer suggests investing in strong stocks, mentioning Palantir specifically due to its recent contract with the U.S. Navy.

What was the Federal Reserve's reasoning behind the rate cut?

Fed members were split; some feared inflation, while others sought to strengthen the job market.

Home / Business and Economy / Fed Eases Rates: Cramer's Bullish Stock Picks Revealed

Fed Eases Rates: Cramer's Bullish Stock Picks Revealed

11 Dec

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Summary

The Federal Reserve cut its benchmark rate by 25 basis points recently.
Some Fed members worried about inflation, others about jobs.
Cramer suggests investing in strong stocks like Palantir.

Fed Eases Rates: Cramer's Bullish Stock Picks Revealed

The Federal Reserve recently enacted a 25 basis point reduction in its benchmark borrowing rate, an action Jim Cramer interprets as a clear signal that the central bank remains supportive of market growth. This easing stance, according to Cramer, presents an opportune moment for investors to buy stocks, emphasizing the principle of "not fighting the Fed." This move occurred despite a divided opinion among Fed members, with some expressing concerns about potential inflationary pressures while others prioritized strengthening the job market.

Federal Reserve Chair Jerome Powell has suggested that further rate hikes are improbable in the near future, though he adopted a cautious outlook regarding potential rate reductions in 2026. Cramer's analysis extends to suggesting that high-performing, albeit expensive, stocks may continue to gain favor on Wall Street. He specifically pointed to Palantir as an example, underscoring its recent contract win with the U.S. Navy as a testament to its ongoing value.