Fed Decision Day, GE Vernova and Southwest CEOs "First on CNBC" 12/10/25

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Carl Quintanilla (0:45)

Market Moving Insight and Analysis join Jim Cramer, David Faber and me, Carl Quintanilla, on the opening bell hour of CNBC Squawk on the Street. Good Wednesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer at Post 9 of the New York Stock Exchange. Faber has the morning off. It is an important day. Fed decision at 2 p.m. Eastern. Yields are up around the world. Australia, UK, Spain. Our own 10-year 421 is about a 3-month closing high and the 3-month 10-year spread highest in more than 3 years. Our roadmap begins with the Fed. A rate cut is expected, but investors focused on what Powell will say about inflation. Big test for the AI trade with Oracle reporting tonight.

And then there's GE Vernova, up 10% pre-market on the back of strong guidance. CEO Scott Strazik is going to join us first on CNBC here at Post 9 Let's begin though with the Fed on this Decision Day. Jim, we're going to get a lot of information in a few hours, although some speculate it might be the last cut for a while.

Jim Cramer (1:42)

Yeah, I think maybe the last cut just because there could be some recognition that, one, they don't have all the data that they'd like to be able to do more or say more. But two, when you're a lame duck, maybe just do nothing. And it's pretty clear that Powell's a lame duck. I wouldn't necessarily expect a lame duck to take any action.

Carl Quintanilla (1:59)

Well, he's not leaving until, what, May, right? They won't have a new chair in the spring.

Jim Cramer (2:04)

True, but you kind of have this shadow over him that makes it so it's very... The president, we know, can't fire him, but I just think that you could get to a situation where unless the numbers are really weak, he just does nothing.

If the numbers get weak and he has to take action, yes, but I don't think he's... I'm not saying he's checked out by anything. He's not a checked out man. I am saying that unless we get definitive weaker numbers, I can't imagine him taking the action that the president wants. This one, if the numbers are weak, and then the next one if the numbers are weaker.

Carl Quintanilla (2:38)

Right. Well, people are talking about the possibility of five descents, which we've not had since the early 1980s.

Jim Cramer (2:45)

No, we haven't. But I do think that this is a very political environment, where we have descents all over them. I mean, look, we're trying to figure out this, what the Supreme Court is going to do. And you just...

Carl Quintanilla (2:56)

About Cook or about Terrace?

Jim Cramer (2:58)

About Terrace. And I always thought that there was, like, some margin for error. People are telling me, Jim, you're way off the reservation if you think that they're going to turn the tariffs over, because you've heard what Coors such as questions were. I just think there's a level of partisanship that we're not used to. And I think that we try to use it... The president doesn't go by the typical standards is what I'm saying. There's just very, very many things that we have to realize.

He puts people in, and they're not necessarily people who are... They're people who are ideologues. We're not used to ideologues. Not that we're all used to a David Souter who had no ideology, but I just think that when you pick a person in the Federal Reserve and it comes from the president, you have to bet they have a dogmatic ideological approach to things.

Carl Quintanilla (3:47)

You know who else was a Trump nominee for the Fed chair? It's Jay Powell.

Jim Cramer (3:52)

Yeah, well, I think this regime's got a project that they're working toward, and I think that the president learned that perhaps picking people who are not loyalists just leads to this kind of thing. Look, I'm not saying that it's wrong. I'm saying he says, listen, I won the election. I'm going to pick people who are loyal to me, as opposed to people who are, let's just say, their own decision makers.