The Federal Reserve signaled Wednesday it is "on our side," but stocks ended mostly lower on the day from China-related trade concerns, according to CNBC's Jim Cramer.
The Federal Reserve's actions Wednesday amount to a sign the U.S. economy remains "fine — not too hot, not too cold," Cramer said during his daily "Mad Money" show.
Tariffs on imported Chinese goods aren't showing signs of any "negative impact," the CNBC host said.
Yet Wednesday's session ended in the red, as trade talks with China seem to be moving in the wrong direction due to a "trust gap" between the two sides, Cramer said. Until trust can be established, a game of "deal or no deal" will play out with the market getting "hammered every time" it becomes apparent a trade deal isn't imminent, he said.
Why It's Important
President Donald Trump likely doesn't trust China to comply with any concessions it offers, Cramer said. In the CNBC host's view, Trump doesn't want to be "taken for a ride" by China and repeat mistakes by former Presidents Obama, Bush, and Clinton.
"The trade war with China remains on the side of the bears for now, which is why today's session ultimate didn't [end] the bull's way."
Trump said that tariffs on Chinese goods could stay in place "for a substantial period of time," Cramer said, adding that these sorts of comments are likely to continue keeping the bulls from being on the winning side of the trade.
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