As major stock markets fell on Wednesday, failing to fully recover from Monday’s brutal sell-off, CNBC’s Jim Cramer explained the current dynamics and attitudes on Wall Street. He used DisneyStock performance following earnings releases explains why investors want interest rate cuts but are concerned about a lack of consumer spending.

“You can’t hope for rate cuts from the Federal Reserve and at the same time expect there to be no weakness in any part of the economy that affects your portfolio,” he said. “Wall Street wants both, but we’ll never get those rate cuts until the Fed sees cash-strapped consumers rebelling against higher prices and forcing businesses to cut them back to pre-Covid levels.”

Disney beat Wall Street’s earnings and revenue expectations. Management praised the performance and profitability of its streaming services. However, the media giant also said its theme park business was hurt by inflation and weaker consumer demand.

Chief Financial Officer Hugh Johnston said the company had experienced a “slight softening in demand,” adding that it was “a slight slowdown that was more than offset by the entertainment business.”

By the close of trading on Wednesday, Disney’s share price had fallen by 4.5 percent.

For Cramer, this situation is emblematic of the problems many other companies are facing as consumers become more selective about their spending. Still, he is confident the Fed will cut interest rates, which could take some of the pressure off consumers.

The company’s parks have not lost their importance, he argued. They are just more expensive than other leisure options.

Cramer noted that Disney may be able to lower its prices because of the success of other business units, adding that consumers may still demand lower prices even if the Fed cuts interest rates.

“The Fed can cheer and delay cutting rates until it sees the Disneys of the world cutting their prices en masse, or it can anticipate what is going to happen and act now,” he said.

Disney did not immediately respond to a request for comment.

Join Now for CNBC Investing Club to follow Jim Cramer’s every move in the market.

Disclaimer The CNBC Investing Club Charitable Trust holds shares of Disney