Jim Cramer Urges Patience Amid Market Selloff: “We’re in the Thick of It Right Now”
As U.S. stocks fell sharply on Wednesday, CNBC’s Jim Cramer urged investors to remain calm, pointing to rising bond yields and budget uncertainty as the primary causes of the pullback—not a breakdown in fundamentals.
“We’re in the thick of it right now. The budget deficit is front and center. Hence the reckoning,” Cramer said on Mad Money.
The Dow Jones dropped 1.91%, the S&P 500 fell 1.61%, and the Nasdaq slid 1.41% amid fears that ongoing congressional gridlock over the federal budget and proposed tax cuts could further deepen the U.S. deficit.
The bill under negotiation aims to make permanent Trump-era tax cuts, but has faced delays due to intraparty disputes among Republican lawmakers. Cramer believes once the bill passes, the focus will shift from panic to optimism.
“When we finish the budget negotiations and we get some big beautiful bill, people will start focusing on how the tax cuts should be great for growth,” he said.
While acknowledging that the bill may be inflationary, Cramer suggested it could also reinvigorate economic activity. He argued that the U.S. can afford to delay dealing with its debt, noting, “We can kick the can down the road for decades.”
Cramer added that once bond yields stabilize, buying will resume, particularly for strong companies that have delivered solid earnings despite macro headwinds.
He admitted the current moment is tense as Wall Street grapples with higher rates, new tariffs, inflation risks, and cautious consumers. But, he concluded, “These can be replaced much more easily than it feels right now.”
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
