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Cramer: Cases to be made for, against this economy

With such a mixed economic picture, the Fed can stall on raising rates, CNBC's Jim Cramer said Tuesday ahead of Fed Chair Janet Yellen's semi-annual testimony to Congress.

"The most visible thing [the Fed] can look at are retail sales, which have been weak on an aggregate basis, but very good on an actual case-by-case [basis]," Cramer said on CNBC's "Squawk on the Street." "The home numbers yesterday were so weak, and yet Toll Brothers [earnings report was] so strong today."

Existing U.S. home sales hit a nine-month low in January, declining 4.9 percent, the National Association of Realtors said Monday. Toll Brothers reported quarterly earnings of 44 cents per share, beating Wall Street's estimates of 30 cents.

"When you look at the individual companies, you say, 'We've got to tighten them. Toll Brothers is too strong.' Then you look at the aggregate and say, 'We better keep things unchanged here. Housing is not that good,'" Cramer added. "There's cases to be made against this economy that [Yellen] can make if she wants to keep it easy."

Read MoreYellen faces Senate grilling on Fed rate policy, transparency

Yellen is testifying before the Senate Banking Committee on Tuesday and appears before the House Financial Services Committee on Wednesday.

—Reuters contributed to this report.