Cramer: With midterms over, we could get 'the rallies of all rallies' if the Fed pauses rate hikes

  • Stocks could be primed for a big rally, but Fed chief Jerome Powell "has to green light us" with an interest rate increase halt, CNBC's Jim Cramer says.
  • With the election uncertainty over, the market "can get on with other worries," the "Mad Money" host contends.

The stock market could be primed for "the rallies of all rallies" now that the midterm election uncertainty is finally over, CNBC's Jim Cramer said Wednesday.

However, that huge pop could only materialize if the Federal Reserve under Chair Jerome Powell decides to pause its interest rate hikes, said the "Mad Money" host.

"If there's anyway, anyway that Jay Powell says, 'You know what, we got to wait and see,' we could have the rallies of all rallies," Cramer said on "Squawk Box." "But he has to green light us."

U.S. stocks were sharply higher Wednesday after the results from Tuesday's election came in about as expected, lifting a cloud of uncertainty hanging over the market.

In the midterms, Democrats flipped enough seats to take the House majority from Republicans. However, the GOP was expected to keep control of the Senate and add seats.

Later Wednesday on "Squawk on the Street," Cramer said the market "can get on with other worries."

Cramer has been critical of Powell, agreeing with President Donald Trump, but for different reasons, that rate increases should be halted.

The Fed began its two-day November meeting Wednesday, with a rate decision set for Thursday afternoon. No change is expected this time around. But another hike is projected after central bankers meet in December. The Fed has already raised rates three times this year.

Last month, Powell said the cost of borrowing money was a long way from so-called neutral, sparking concerns about a more aggressive Fed tightening that led to October being the worst month for the S&P 500 since September 2011.

So far this month, as of Tuesday's close, the S&P 500 was off to a much better November.