Jim Cramer Blog

Today's rate hike sent the markets straight down after the announcement at 2:15p.m. This was mainly because the language that Bernake used indicated that further hikes may be needed in order to keep the economy in check. In my opinion, the mere fact that this language was used, indicates that our economy remains strong. And, in strong economies, stocks rise. So, why the selloff? The main reason for the market behavior today had to with the fact of uncertainty relating to the possible new policies that may be set forth by our new federal reserve chairman. I think the stock market would have gone down today even because even if there was no change in rates because investors would become scared that the economy is beginning to slow and would move their money into more cyclical plays. There is only one way to end these drastic market moves on the day that the Federal Reserve meets: Don't publicize these meetings. These comments and actions that the Reserve publicizes scares the American public. Let the public determine on their own how the economy is doing based on GDP, job reports, etc., and the rise or decline of major companies earnings. This would increase investor sentiment and eliminate these major market swings that we have seen in the past on the days or weeks following a Federal Reserve policy change on interest rates.