The resignation of FOMC member Adriana Kugler also opens the door for a more dovish Fed shift.

The CME Group’s FedWatch tool shows a 66% chance that the Fed lowers its benchmark rate by 0.25 percentage point in September.

This is a number that says: Fed Chairman Jerome Powell, "you didn't need to wait" on rates, Jim Cramer said Friday.

Rieder's comment came after data showed U.S. labor market suffered a sizable slowdown in the past few months.

Stocks fell sharply as investors digested weak employment numbers alongside the turmoil within the government’s statistical agencies.

"In episodes when labor demand slides with a growth downshift, it is often a precursor to retrenchment."

The resignation of FOMC member Adriana Kugler also opens the door for a more dovish Fed shift.