CNBC's Jim Cramer wants the Federal Reserve to reconsider its decision to steadily increase interest rates despite concrete signs of inflation because of the turbulence it's causing financial markets.

"I don't like what's happening at the Fed because the Fed has decided, like [Fed Chair] Ben Bernanke in 2005, 'we've got to put a stop to this' – even as they knew absolutely nothing in 2007," Cramer said Wednesday on "Power Lunch."

Cramer famously vented his frustration in 2007 about Fed members ignoring signs of the upcoming financial crisis.

Last week, Fed Chair Jerome Powell characterized monetary policy as a "long way" from neutral, which signaled a possibly more aggressive path for rate hikes. Those remarks sent bond yields soaring, which in turn sent stocks lower.

Right now, rates are still relatively low, the "Mad Money" host said.

However, "any bit higher and we're starting to see the different shocks in the system," he added. "What you really want is a Fed that says, 'wow you know what this may be a little too fast, too much.'"

That said, he doesn't think 2018 is as bad as 2007 because it is very easy for Powell to "take it back."

And if rates go up slowly and deliberately, that will allow stocks to go up, he added.

Cramer thinks Powell should take a page from his predecessor, Janet Yellen.

"I really miss Janet Yellen. I miss her because what she would do is say, 'you know I need more inputs. I'll look at the market, it's down 500 points. Maybe we should make some calls,'" he said.

"She was a student. She wasn't a teacher. She was a student and she learned from people," he said.

However, while people now want to sell, Cramer thinks long term it is "crazy" to do so. In fact, he thinks as the market goes down, there may be some good bargains.

"I think it would be tragic if people just said, 'you know what, get out now.'"

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