Despite St. Louis Federal Reserve president, James Bullard, calling for a rate cut, Jim Cramer isn't sold on the idea that the Fed will cut rates.
Federal Reserve Chairman Jerome Powell's comments during a central bank symposium in Chicago triggered the jump, although investors had been primed for the rally earlier in the week when Bullard, spoke of a "darkened" global trade outlook and hinted at a policy move in response.
And the CME group's FedWatch tool is now pricing in a 53% chance of a rate cut in July.
"We do not know how or when these issues will be resolved," Powell said of the ongoing trade conflicts with China, Mexico and the European Union. "We are closely monitoring the implications of these developments for the U.S. economic outlook and, as always, we will act as appropriate to sustain the expansion, with a strong labor market and inflation near our symmetric 2% objective."
But the thing holding the Fed back?
"I think that the only thing that would keep them from cutting rates is that it's such an admission that you did something stupid and December," said Cramer.