If anything, Cramer said he believes the drop in stocks Wednesday, combined with the new insight into the Fed’s thinking, could create opportunities for investors.
“I think you should simply stay the course, maybe using this decline to buy some high-quality stocks, especially industrials, right into the teeth of a downturn,” Cramer said.
“With the Fed taking itself out of the equation for at least six months, maybe longer, the industrials have a lot more room to run,” he said, adding that he also shares that forecast for the technology sector.
The Federal Open Market Committee left interest rates at near-zero Wednesday, but central bank officials indicated a hike could come as soon as 2023. In March, the FOMC expected interest rates to stay pat until at least 2024.
In general, Cramer applauded Powell for offering a “commonsense” outlook on the U.S. economic recovery as further coronavirus-era restrictions are rolled back and activity picks up.
“The idea that Powell needs to figure out the game plan for the next two or three years, right at this very moment, is also absurd,” Cramer said.