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CNBC’s Cramer: Fed moves, Fauci optimism ‘all preparation for a May opening’ of economy

Greg Nash

CNBC’s Jim Cramer said that he believes that Thursday’s “unprecedented move” by the Federal Reserve and recent optimistic comments by a top infectious diseases expert regarding lower death tolls from the novel coronavirus in the U.S. show preparations are being made for a May reopening of the economy.

“I think this is all preparation for a May opening of the economy,” Cramer said on CNBC.

“A May opening would be a wondrous thing,” Cramer added. “It’s the first news in a confluence of news that makes me say, ‘There’s light. There’s light here.'”

Cramer’s perspective comes after the Fed announced it would finance up to $2.3 trillion in further economic support for the U.S. amid the pandemic, including $600 billion to purchase loans to small and mid-size businesses and $500 billion to buy state municipal bonds.

Stocks opened higher on the news Thursday morning after a 730-point gain on Wednesday. 

The “Mad Money” host also noted that an important piece required to restart the stalled economy is progress on a coronavirus vaccine.

“We just need to hear something positive vaccine, something positive antiviral,” Cramer said

Anthony Fauci, the director of the National Institute of Allergy and Infectious Diseases, told Fox News on Wednesday that original death toll projections “are going to be downgraded” due to successful social distancing mitigation efforts.

“Although one of the original models projected 100- to 200,000 deaths, as we’re getting more data and seeing the positive effect of mitigation, those numbers are going to be downgraded,” Fauci said on “America’s Newsroom.”

“I don’t know exactly what the numbers are going to be, but right now it looks like it’s going to be less than the original projection,” he added.

Approximately 6.6 million Americans filed new applications for unemployment benefits in the first week of April, according to data released Thursday by the Labor Department, as social distancing measures have forced businesses to close or scale back their operations.

More than 10 million Americans applied for unemployment benefits in the final two weeks of March.

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