Jim Cramer Says It’s Time To Buy, As Fed Made Positive Statements

In an article on CNBC, Jim Cramer said that the Federal Reserve is doing everything possible to promote an economic recovery. According to Reuters, the Fed has retained its interest rates at the low level of 0% and 0.25% and has promised to keep them there for an extended period. Reuters quoted the Fed as saying that it will reinvest principal payments from its mortgage bonds into long-term Treasurys “to help support the economic recovery in a context of price stability.” Cramer stressed that these actions proved that Fed Chairman Ben Bernanke “is not the problem... he is actually on the side of the good guys.” It’s a Congress “focused on legislation that “cuts profitability,” he added. With the Fed saying good things, it’s time to “buy,” according to the Mad Money host. Cramer backed the “buy” call given by BlackRock Chief Equity Strategist Bob Doll on Intel INTC, which is currently trading under $20. While some analysts have been concerned about falling demand for PC, Jim said investors should be “kind of OK” with INTC as long as the company doesn’t preannounce a shortfall within the next couple of weeks. He also recommended Magna International MGA and Lear LEA as both of them had reported solid quarters. Scotts Miracle-Gro SMG had also done well in the latest quarter.