Cramer's Mad Money Recap 3/16: Fed Move Is Good for the Market

Jim Cramer says the Fed is using a common-sense approach to break the cycle of inflation.



The Federal Reserve's decision Wednesday to raise interest rates is a good thing for the stock market, Jim Cramer told his Mad Money viewers Wednesday.

The Fed isn't being reckless, Chairman Jay Powell is using a common-sense approach to break the cycle of inflation so stocks can go higher.

We've been in a bear market since November because companies are paying more for just about everything, which leads to lower profits. That's why tamping down inflation is a good thing. The Fed can't wave a magic wand and make inflation disappear, but they can curb demand and promote stability, giving supply time to catch up and return to equilibrium.

Those that worry about the yield curve aren't stock investors, they're mostly bond traders. The yield curve has little to do with the earnings of individual companies. So instead of fretting whether the Fed will make six moves this year or seven, focus on what rake hikes mean for the companies in your portfolio. Most of our economy will do better once their supply chain issues have been resolved.

Executive Decision: American Express

In his first "Executive Decision" segment, Cramer sat down with Steve Squeri, chairman and CEO of American Express  (AXP) - Get American Express Company Report, ahead of the company's annual investor day.

Squeri said that technology and great customer service have been driving the growth at American Express. The company has been investing in its customers and its brand throughout the pandemic, he said, which has led to the 18% to 20% revenue growth it is forecasting this year.

Squeri added that millennials and Gen Z consumers have been flocking to the American Express brand both for the prestige of the brand and the many rewards they offer.

When asked about travel, Squeri said that consumer travel has already started to return, and with so many remote employees these days, he expects a new segment of business travel to emerge as remote workers meet with their teams in person from time to time.

Finally, Squeri noted that American Express has the best employees because they're a great place to work and offer hybrid work options.



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