The US Federal Reserve may "panic" on Wall Street as it resigns its much-anticipated rate hike in December, CNBC's Jim Cramer said Friday.
"It would be wrong to crank up the tightening, but if it does not raise us by a full quarter, it will cause a panic," said the Mad Money host. "I hate to say, Mr. Powell, but here's: I told you."
Cramer said he had "completely" understood why the Fed would raise interest rates this month, citing the continued strong purchasing manager's index reports healthy retail sales and almost full employment.
"The fact is, however, that the economy is slowing down and the stock market is showing it for sure. […] That's why it's so skeptical," he said. The large averages have weathered drastic price swings this week as investors have been angered by a series of economic constraints, including, but not limited to, the US-China trade dispute. The five-year bond yields also triggered Wall Street warning bells a strong sell-off of shares.
"Perhaps a creative Fed chief could frustrate this circle by raising interest rates, but perhaps also selling something the long-term bonds they've been relying on since the financial crisis ̵
All in all – including the S & P 500 index, which will be negative for the year – investors should be prepared for further market fluctuations In the coming weeks, the "Mad Money" hostage warned.
"I think we will have to hold on to these volatility sessions a little, as there are all kinds of difficult counter-currents," including US-China trade relations and stock market weakness in the stock market, Apple said.
"And of course, there is a wrong Federal Reserve that will lean into a corner at the next rate hike," he added. "Get used to these cross currents, because this is the new normality, at least for now."