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Stocks still have an obstacle before "bullish promised land"

While the Federal Reserve has now recognized the importance of data-driven interest rate policy, CNBC's Jim Cramer said on Wednesday that the stock market was not yet completely out of the woods.

But for Cramer, there is a more complicated obstacle: "we have to jump to reach the bullish promised land," he said in "Mad Money".

"We checked Jerome Powell's box, he will not be the cause of the major slowdown, not after today," he said. "However, we still have the G-20 summit – China – and it's actually a much more difficult problem to solve."

President Donald Trump and Chinese President Xi Jinping are expected to meet at the G-20 to discuss US-China trade policy. The summit of the world's economically developed nations will take place in Buenos Aires, Argentina.

The two countries exchanged customs duties on their mutual exports in the second half of 2018, leaving investors uncertain about the evolution of relations between the United States and China. US tariffs on Chinese goods worth about $ 200 billion are expected to rise from 10% to 25% by the end of the year, and Trump has threatened new rounds of tariffs.

"We do not know what the president will do" at the summit, said Cramer. "My assumption? Trump will say that he is not satisfied with what the Chinese are doing up to now, so he will … increase [the tariffs] from 10 to 25%. However, it will also expand an olive branch, which means that it will be willing to not apply its customs duties to the other half of Chinese exports to the United States. "

Cramer, who acknowledges that China's unfair trade practices justify retaliation but does not necessarily think the Trump administration plan is the best solution, said that a result without a transaction at the G-20 does not would only create a small "hiccup" during the recovery. .

But "if I put my hat in stock, I want to see some kind of agreement with China because it's good for business," he said. "Maybe they're lifting a lot of their trade restrictions and we do not need to raise the tariff to 25%." Would not that be great for the market? I do not think the Chinese will bite. "

Cramer explained that the most toxic problem for the stock market has now disappeared and that, according to the G-20, stocks could see better days.

"Regardless of what the president says about him, Powell is a rigorous thinker, a flexible leader and a good guy, and today he may have given a new lease on the economy and the world. to the stock market, provided that the President of the G- The adventure does not end with the even more bellicose aggravation of the White House on China, "said the presenter of" Mad Money ". "The last thing the stock market needs is a price tag on the iPhone." Today, however, it was a win – a big one, a big W. Enjoy it. "

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