is conducting a scorched-earth policy to kill economic activity," Jim Cramer said on his
"RealMoney" radio show Wednesday.
That is causing the market to act in a "schizophrenic" manner, Cramer said.
Today stocks moved up as a result of new data showing that orders for durable goods had decreased. But when new homes sales data showed an increase in economic activity, the market moved down, said Cramer.
Cramer believes that sort of "counterintuitive" market behavior is going to continue.
"The market will go down each time we see commodity prices go up," he said, adding that high copper prices are causing a headache for Fed policy makers.
Higher commodity prices may feed into higher consumer price levels, thus stoking inflation, Cramer said.
Despite the fact that the world has been awash with copper for pretty much the last 25 years, Cramer said, right now there simply isn't enough of the metal in the world to feed global industrial demand -- most notably from China.
"Since the Fed can't create copper, what it is going to do is to reduce economic activity," Cramer said.
Whenever the Federal Reserve thinks the economy is growing too quickly, there is a risk that policy makers will put the brakes on and increase interest rates.
"Imagine a car on the highway that's going too fast," Cramer said. It will get pulled over.
To see the most recent edition of The RealMoney Radio Recap in its entirety, please click here. This recap is published every day around 3 p.m. ET.
James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for
Action Alerts PLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by
clicking here. Listen to Cramer's RealMoney Radio show on your computer; just click
here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click
here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click
here to get his second book, "You Got Screwed!" and click
here to order Cramer's autobiography, "Confessions of a Street Addict."