Third, the market would benefit if Federal Reserve Chairman Jerome Powell acknowledged that he was "winning the war against inflation," Cramer argued. Ideally, that would happen at Federal Open Market Committee meeting in December, at which the central bank is widely expected to raise interest rates again, he said.
Reiterating that he supports one more rate hike, Cramer cited the numerous factors that tell him the economy is slowing: the prolonged decline in oil prices, sliding prices for materials, lower home sales figures and prices, and high mortgage rates.
"Don't forget, Powell thinks it is his job to slow the economy in order to prevent inflation. To be fair, that's part of his job. ... But the way the Fed tames inflation is by slamming the brakes on the economy so that wages stop rising. You know what? I think that's ill-advised," Cramer said. "Powell does not need to say that rate hikes are off the table. He just needs to say he sees concrete evidence that the rate hikes, so far, are working to tame inflation."