Stocks are controlled by two masters: oil and the Federal Reserve, Jim Cramer says. The key is to keep them separate because if the two masters bump into one another, the results could be disastrous.
They collided on Tuesday following the report that the U.S. consumer price index rose 0.4 percent last month, which was higher than the 0.3 percent expected. The fear of higher inflation introduced the theory that rising oil prices could mean that the Fed will institute multiple rate hikes this year.
"If that is the case, there is more downside ahead even as I think you could make a very convincing argument that the inflation we have right now can't be curbed by higher rates," the "Mad Money" host said.
At this point, Cramer is praying that Fed chief Janet Yellen is flexible enough to see that the Fed can't stop inflation.