"Look, everyone's entitled to their own opinion, but that doesn't mean I think everyone should express that opinion, especially when that person in question happens to run the Federal Reserve," the "Mad Money" host said.
Yellen used such terminology to describe valuations as "generally quite high" and that they represent "potential dangers." As a veteran of the markets, Cramer knows that this kind of language is often unhelpful.
Nothing good can come from someone in Yellen's position calling stocks overvalued. In Cramer's perspective, if she thinks that stocks are truly overvalued, why not just raise margin requirements?
The real worry about stock valuations is coming from people who are buying stocks with borrowed money, which can do some serious damage to the market. So, it makes a heck of a lot more sense to Cramer to raise margin requirements, something that Yellen has the power to do.
"So, Ms. Yellen, if you really think stocks are too expensive, raise those margin requirements. But please don't raise interest rates to pop this perceived bubble in valuation because the two often have nothing to do with each other," Cramer added.
Ultimately, if investors want to go ahead and take some off the table because of Yellen's warning, go for it. But in Cramer's opinion, the best way to play the Fed is to disregard Yellen as your investment advisor. She might be good at running the Federal Reserve, but she's no portfolio manager.