CNBC “Mad Money” host Jim Cramer weighed in on the Chinese economy and offered a bleak outlook for the U.S. market in the first session after the Federal Reserve’s June rate-setting meeting.
Cramer offered his take on a monetary policy action from the Chinese central bank in a tweet early Thursday.
The People’s Bank of China on Thursday cut the rate on 237-billion-yuan one-year medium-term lending facility loans to some financial institutions by 10 basis points to 2.65%, Reuters reported.
This marked the first downward adjustment in 10 months and was precipitated by the economy not picking up pace even after the reopening.
“Good luck,” Cramer said.
He also remarked about data released from China that showed unemployment among younger people remaining high at 20%. “Any stimulus plan that works will need help from the West,” he said.
China cuts main lending rate from 2.75 to 2.65%. Good luck. Any stimulus plan that works will need help from the west. Unemployment above 20% for younger people means more factories are needed. You want to be the one to tell the Commerce Secretary you are opening there?
— Jim Cramer (@jimcramer) June 15, 2023
“Not a great setup for today,” the stock picker said. Stocks sold off immediately after Chairman Jerome Powell’s post-meeting press conference on Wednesday, reacting to the hawkish undertone and the dot plot graph that suggested the central bank may not be done with its rate hikes.
The resilient market came back up in late trading before closing mixed.Early indications suggest stocks could start Thursday’s session on a weak note.
Cramer also said the rate cuts many were hoping to see later in the year may not materialize. “Too many people are re-thinking the rate ‘cut’ scenario for later in the year … we have called these people losers. we have been too kind,” he said.
The iShares MSCI China ETF (NASDAQ:MCHI) rose 0.64% to $47.14, according to Zenger News Pro data. Zenger News does not provide investment advice.
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