Cramer Calls China's Deposit Rate Cut 'Pathetic,' Questions Fed's Approach

CNBC’s Jim Cramer took to Twitter to express his frustration with the monetary policy stance of the Federal Reserve.

What Happened: Cramer criticized the recent decision by the Peoples Bank of China to further lower deposit rates, describing it as a “pathetic move.” He suggested that this action was taken in an attempt to support China’s struggling economy.

By reducing bank deposit rates, it is expected that more savings will be directed toward spending and more attractive investment opportunities.

Cramer also expressed his dissatisfaction with the monetary policy approach of the U.S. Federal Reserve, stating, “We are the only country actually trying to restrain ours.”

Why It Matters: Chinese authorities have urged the country’s largest banks to reduce deposit rates for the second time in less than a year, in a heightened push to bolster the world’s second-largest economy, Bloomberg reported on Tuesday, citing anonymous sources.

The Federal Reserve has been consistently focused on combating inflation and has maintained a “higher rates for longer” policy for over a year. Starting from 0-0.25% in March 2022, the central bank raised rates to 5-5.25% within a little over a year.

While the central bank’s hawkish stance has been supported by the economy’s resilience, there are concerns among economists that the second half of the year could experience a hard landing, as the cumulative impact of consecutive rate hikes becomes more apparent.

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