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Cramer: Fed is right to hold firm on interest rates

CNBC's Jim Cramer said Thursday that consistently mixed economic data since the start of the year, in addition to weak global growth, are reasons enough why the Fed held back on a rate hike.

"I understand what [Fed Chair Janet] Yellen and company did," he said on "Squawk on the Street."

Cramer said the first reading of second quarter GDP might look better than it really is because "the rest of the world is on the decline." He said he is most concerned about slowing growth in China, more so than fears about Europe's slowdown.

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"You could make a strong case that we should tighten right now," he said. "I think the problem with that is the opaque story on what's really happening in China."

In addition to global fears, Cramer pointed to inconsistent U.S. economic data that is throwing the Fed for a loop.

"It's a mixed picture and it's been mixed for all of 2015 and it has been consistent. This is a consistently inconsistent year."