CRAMER: RATE CUTS LOOK UNLIKELY
Jim Cramer says he doesn’t see how interest rates can fall given the current backdrop.
He points to Warsh’s tough inflation stance, the ongoing war, U.S. allies’ dependence on American support, and rapidly rising oil stocks.
Cramer called the combination of developments “unholy.”
FED’S GOOLSBEE: RATE CUTS POSSIBLE IF INFLATION HEADS TO 2%
Fed’s Goolsbee remains optimistic inflation can return to the 2% target, provided demand does not overheat.
He says the Fed currently has an inflation problem, not an employment problem, and wants convincing evidence that price pressures are fading.
If inflation is clearly heading back toward 2%, Goolsbee says he would have “no problem” with interest rates coming down.
🚨POLYMARKET ODDS OF FED RATE CUTS IN 2026 PLUMMET: ZERO CUTS NOW AT 77.6%!
Prediction markets on Polymarket show the probability of any Fed rate cut in 2026 has dropped sharply, with zero cuts now priced at ~77.6%.
Driven by concerns over persistent inflation from tariffs and AI-related pressures on energy and tech costs.
Markets are increasingly betting on steady or higher rates through the year.
The more Donald Trump seeks interest rate cuts, the stronger the case for a hike becomes. Kevin Warsh has left himself with no good choice but to raise rates