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Cramer: The Fed is the most important

While the Fed, China and oil prices all seem to be top of mind for most investors, CNBC's Jim Cramer said Tuesday that the U.S. central bank's next move is the most important out of these three factors affecting financial markets.

"I think [the Fed's statement] is going to be very important," Cramer said on "Squawk on the Street."

The Federal Open Market Committee kicks off its two-day meeting Tuesday and releases its statement Wednesday afternoon. No change in rates is expected, but investors will be scrutinizing the statement for insight into policymakers' views on the economic environment and the future path of tightening.

If the Fed says that it is going to postpone hiking rates, then this mention will prompt a "rip-roaring rally," Cramer added.

U.S. stocks rose Tuesday, helped by a bounce in oil and some earnings beats, ahead of the release of the central bank meeting statement Wednesday.

U.S. crude rose more than 5 percent to above $31.50 a barrel midday Tuesday after plunging 5.75 percent Monday. Brent also climbed about 5.4 percent to top $32 a barrel. The gains came amid news OPEC is making renewed calls for rival producers to cut supply alongside its members.

The Dow Jones industrial average climbed more than 250 points, with 3M adding the most to gains. Goldman Sachs was the second-greatest contributor, up more than 2.5 percent at midday.

Still, Cramer noted that this current rally could be short-lived.

"None of these gains matter if oil is bad, China is bad and the Fed does the wrong thing," he said.

— CNBC's Evelyn Cheng contributed to this story.