Oil prices rose on Tuesday, setting up a challenging situation for the head of the Federal Reserve before Wednesday's meeting, CNBC's Jim Cramer said.

"The surging price of crude … makes life difficult for Fed Chief Jay Powell," Cramer said on "Mad Money." "Even as many other commodities have actually now fallen, and some falling precipitously in recent weeks, oil just keeps going higher."

The comments come after the major averages all declined in Tuesday's session ahead of the Fed's monetary policy meeting. A Wall Street that's keeping an eye on rising consumer prices will be watching closely as Powell is "tormented" with questions about inflation at the press conference, Cramer said.

Traders are watching for any sign that the Fed will change course on inflation and adjust tapering plans.

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