Before the Fed cuts rates, Jim Cramer believes there's potential for profits.

• On Monday, CNBC's Jim Cramer stated that although the timing of rate reductions is uncertain, investment opportunities exist.
• Cramer stated that he believes the greatest profits will be generated during the time frame between the Fed's current stance and the point at which the first rate cuts occur.

On Monday, CNBC's Jim Cramer analyzed Federal Reserve Chairman Jerome Powell's remarks on inflation and stated that although the timing of rate reduction is uncertain, there are investment opportunities in the meantime.

He urged investors to invest in stocks rather than keeping their funds in low-risk options.

Cramer believes that the greatest profits will be made during the time between the Fed's holding pat and the first rate cuts. If this is true, investors should not keep all their money in CDs or Treasurys, but instead invest in stocks.

In a Sunday interview with "60 Minutes," Powell reiterated that the Federal Reserve would cut rates this year, but not likely in March, as many on Wall Street had anticipated.

Powell stated to Scott Pelley of the news magazine that the Fed wants more evidence that inflation is consistently decreasing to 2% before they can begin reducing interest rates. Their confidence is increasing, but they need more assurance before taking this significant step.

Cramer acknowledged that some investors believe stocks are a risky choice until the Fed reduces interest rates. However, he stated that by the time this occurs, it will be too late to experience any profits.

If you examine the sectors that are experiencing significant growth at present, such as technology, industrials, railways, travel and leisure, and healthcare, you can easily identify the winners," he stated. "And if you own a stock in one of these sectors, you know that a 5% return on investment from a CD is a small fraction of what a great stock can provide in a week or even a day.

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The CNBC Investing Club Charitable Trust owns stakes in Meta, Amazon, and Nvidia.