"If the Fed moves in December, you'll wish you sold at these prices," Cramer said on "Squawk Box." "There's nothing good here."
The Fed has already raised rates three times this year. Wall Street expects one more in December and so does Cramer who has predicted the central bank would go next month but should then "wait and see."
Cramer spoke as Dow futures were indicating a more than 300 point drop at the open on Wall Street. Stocks later opened lower, with the Dow Jones Industrial Average plunging as much as about 550 points in midmorning trade.
Nearly every sector is in a "capitulation phase," with the exception of health care, said Cramer. "There's just a lot of bad. I mean I'm not going to hide it. There's just a lot of bad. It's a bear market."
The "Mad Money" host has been critical of the Fed under Chairman Jerome Powell, saying central bankers need to recognize that the economy is slowing and they can't move rates to a preconceived notion of so-called neutral.
Late last month, Cramer said it almost seemed like Powell is being aggressive in his path to raise interest rates because the Fed chairman wants to throw a wrench in President Donald Trump's agenda.
Cramer expects the only thing that can stop the market's recent plunge is the Fed changing course on interest rates or Trump ending his tariffs.