CNBC's Jim Cramer argued Tuesday that stocks are "really oversold" after the market fell to a new low for 2018.

"Don't put me in a 'Fed box,'" Cramer said on "Squawk on the Street," referring to his recent call that the stock market could plunge further if the Federal Reserve hikes interest rates Wednesday afternoon. "There are things that have come down so much."

Stocks were actually trading higher early Tuesday, rebounding from Monday's session that saw the market fall another 2 percent. The Dow Jones Industrial Average and , as of Monday's close, were having their worst December performances since 1980, and were on pace for their worst December since the Great Depression.

Heading into Tuesday's session, the Dow and S&P 500 were riding their lowest closes since March 2018 and October 2017, respectively. Friday's sharp decline put the Dow and S&P 500 back into correction territory, joining the Nasdaq.

The "Mad Money" host said Monday that the persistent sell-off in the market has gone beyond concerns about a slowdown in global economic growth and what the Fed will do on rates this week and next year.

Cramer and market participants expect the Fed to raise rates for a fourth time this year at the conclusion of its two-day policy meeting Wednesday.

Cramer has been critical of Fed Chairman Jerome Powell ever since his comments Oct. 3 that rates were a "long way" from so-called neutral. Powell appeared to walk back those remarks in a speech last month, saying rates are "just below" neutral, suggesting that concerns about a more aggressive path higher for rates may no longer be warranted. Cramer at the time applauded Powell's revised remarks.

President Donald Trump has also been critical of the Fed under Powell. Cramer said Tuesday that the president has "a right" to criticize Powell but also pointed out that Trump "picked the man." In November 2017, Trump nominated Powell to lead the Fed. Powell, a member of the Fed's board of governors since 2012, succeeded Janet Yellen as central bank chair in February.