CNBC's Jim Cramer says the Trump administration deserves credit for the economic recovery. For access to live and exclusive video from CNBC subscribe to CNBC PRO: CNBC’s Jim Cramer said Thursday the economic response by the Federal Reserve and the Trump administration to the coronavirus pandemic has been critical to the recovery in U.S. jobs and the financial markets.
“They threw a lot at the economy in order to make it work, and I think you could argue from that employment number, it is working,” Cramer said on “Squawk on the Street,” referencing the record 4.8 million nonfarm jobs added in June.
“I don’t think the stock market is lying here. I do think there is a level of speculation, but there also are a lot of companies that would’ve gone out of business that didn’t,” Cramer added.
U.S. stock indexes were rattled by the advent of the new coronavirus, falling rapidly from their February records highs into bear market territory, defined as more than 20% off a recent high. But since its late March bottom, the S&P 500 has risen more than 40%, as of Wednesday’s close.
The “Mad Money” host specifically referenced the swift and wide-ranging emergency action from the Fed, saying that Chairman Jerome Powell “deserves a lot of credit” for helping keep the corporate bond market functioning when it “could have gone very bad.”
Cramer also complimented Treasury Secretary Steven Mnuchin, especially for working across the aisle with Democrats. Collectively, the Fed and the Treasury learned lessons from the 2008 financial crisis and this time responded aggressively, Cramer contended.
“How did the cruise lines survive? How did the airlines survive? And the answer is Secretary Mnuchin and the Federal Reserve decided they weren’t going to fail,” Cramer said. “You could argue that the banks should have already had their dividends cut, but there was so much money being pumped in that they seem safe. The Fed and Treasury decided not to let this become a depression.”
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