Cramer: Rate hike is a terrible idea right now

Looking at the horrendous action in the market on Tuesday, Jim Cramer wants investors to realize this is what it looks like when the Federal Reserve tightens while U.S. manufacturing data expands at its lowest pace in 2 years. This is exactly what happens when the Fed ignores China.

"I recognize that there is no good time to raise rates, but this would be a particularly bad time to raise rates," the "Mad Money" host said. (Tweet This)

What really scares Cramer is that there are enough people on the FOMC who look at employment and car sales and think they have done their job and the U.S. is ready for a rate hike and just want to get it over with.

But a "just get it over with" mentality is not a reason to do anything in Cramer's book.





Janet Yellen
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Janet Yellen

"The Fed's job of slowing down the U.S. economy when it gets too hot is already being done by the global economic slowdown, and they don't have to make things so bad that it impacts here, too," Cramer added.

In Cramer's perspective, the government is not creating more jobs and it's not ready for any sort of a slowdown.

So what would the real cost of waiting to raise rates be? Would Manhattan real estate become too hot? That chicken prices would be too high? The Fed doesn't even control that.

Read more from Mad Money with Jim Cramer

Cramer Remix: Most contentious stock out there
Cramer: Welcome, bear! Rate hike already built in
Cramer: A few stocks still running with the bulls

Ultimately Cramer does not understand why so many people are calling for a rate hike right now.

"I haven't heard a compelling argument yet, and otherwise let's just say that tightening in an obvious bear market like we have leaves me a little cold," Cramer said.

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