CNBC’s Jim Cramer has indicated that the start of the earnings season has been uneven, making it difficult to predict the Federal Reserve’s decision on interest rates in March.

Cramer likened the current situation to being on a battlefield, where the uncertainty is so thick that it’s hard to determine whether it’s time to raise rates or cut them. He emphasized that the situation could go either way, which is why he finds it concerning that many money managers are betting on a premature rate cut in March.

During the earnings season, Cramer analyzed the results of several companies that reported on Tuesday. He highlighted that DR Horton’s earnings miss led to a significant drop in shares, down about 9% by the close of trading. Cramer explained that higher rates prompted DR Horton to offer mortgage incentives to encourage home purchases.

Furthermore, Cramer pointed out that some companies’ reports revealed that inflation remains a significant issue. General Electric’s report indicated weakness due to inflation and supply chain issues. Additionally, RTX’s outgoing CEO, Greg Hayes, mentioned that costs were higher than expected last year, suggesting that the idea of the Fed cutting rates is ‘misguided.’

Cramer expressed concern about the rally of many stocks based on the expectation of low inflation, a strong economy, and a series of rate cuts. He questioned whether these rate cuts are truly beneficial, stating that while suffering homebuilders like DR Horton may welcome them, manufacturers like GE or RTX still perceive significant inflation in the system, and lower rates would only worsen their problems.

Jim Cramer’s insights shed light on the complexities and uncertainties surrounding the current earnings season and the potential impact on the Federal Reserve’s upcoming decision on interest rates.