Just admit that you were wrong about the rates

Jim Cramer of CNBC said Friday that Federal Reserve Chairman Jerome Powell should admit that he was wrong to raise interest rates so aggressively throughout the year. last, as the trade dispute between China and China intensified, as economic growth began to cool and the stock market rumbled.

Powell should recognize the mistake and change course, said Cramer.

"Why can not the Fed chief say," You know what? I was wrong. "It turns out there is a unique opportunity in life (…) to allow the Chinese to play fair," said Cramer. "Listen, sometimes you have to say you're wrong, I said, for example, that I was wrong on some titles."

Cramer's comments come less than two weeks before the next Fed meeting. The central bank is expected to cut rates later this month for the second time this year. Economists' forecasts are another reduction in borrowing costs by a quarter of a point. In July, the Fed cut rates for the first time in more than 10 years.

Cramer said Friday that he was not worried about a recession in the United States if the Fed lowered its rates. He said the rates are still too high after the 2018 moves. Recession-related concerns surfaced last month when the 10-year Treasury yield reversed. They were briefly below the 2-year return for the first time since the 2008 financial crisis and the subsequent Great Recession. The inversion, considered a precursor indicator of a recession, has been intermittent for weeks. Currently, the situation is back to normal.

"The Fed chairman should be intimidated by the bond market, and the bond market says," Whoa, are you wrong, Jay? "The big guy said," I was wrong. I have to make some changes, "said Cramer, host of" Mad Monday ".

President Donald Trump, who actually appointed Powell to head the Fed, has been the toughest critic of the president, tweeting several times that Powell should cut rates. On Friday, just before the release of the jobs report released by the government in August, Trump again criticized Powell in a tweet that also mentioned Cramer.

Cramer urged the president to fire Powell. "I just do not want Powell to be uncompromising and bad on a number of occasions to upset the President of the United States."

Last year, Powell and his colleagues in charge of monetary policy raised rates four times. Before the final increase of 2018, Powell had reported a strong increase in 2019. These comments caused a decline in the stock market. The Fed still raised its rates in December. Then later, the head of the Fed withdrew the discussion for patience in what is now called the "Powell Pivot".