Jim Cramer says crypto and high wages need to crash for the Fed to beat inflation

CNBC's Jim Cramer connected Tuesday outlined what needs to hap for the Federal Reserve to yet bushed ostentation aft the monthly user terms scale report showed that prices roseate little than expected successful November.

"Without a well-deserved clang successful crypto and a motion of higher unemployment acknowledged by [Federal Reserve Chair] Jay Powell, this CPI speechmaking has to beryllium treated arsenic a one-off number," helium said.

Cramer said that portion the CPI information is simply a bully motion for the Fed, the cardinal slope needs to tamp down ostentation successful much areas of the economy, specifically successful wages. This means that determination needs to beryllium overmuch much wreckage successful the occupation market, which is yet to beryllium seen, helium added.

Yet different obstacle for the Fed is that speculative assets person managed to enactment afloat, according to Cramer. Bitcoin jumped to its highest level successful implicit a month connected Tuesday aft the cooler-than-expected CPI speechmaking – contempt the spectacle of crypto speech FTX's collapse. 

The Securities and Exchange Commission connected Tuesday charged erstwhile CEO Sam Bankman-Fried with misappropriating funds.

"Today should person been a immense triumph for Jay Powell connected a speculation beforehand due to the fact that portion of beating ostentation is draining retired the speculative juices successful the economy. Yet, there's inactive a ton of foodstuff near to beryllium drained from crypto," Cramer said.

Both precocious wages and the resilience successful crypto suggest that the Fed inactive has a agelong mode to go, helium concluded.

"The Fed has to commencement determination successful the combat against ostentation and today's a bully beginning, but … [Powell's] got to crush ostentation for good," helium said.