Mad Money host Jim Cramer claimed that “with the immersion of crypto, the Fed’s job is almost done.” He emphasized that “One front in the Fed’s excellent and complete victory against inflation” is the fight against financial speculation.
Jim Cramer on Fed’s Policy, Inflation, Crypto
Jim Cramer discussed crypto and the Federal Reserve’s fight against inflation on CNBC’s “Mad Money” program Thursday. He is also sometimes referred to as “Cliffhanger.”
He began by stating that “crypto doesn’t hedge you against anything – at all,” including stock prices, noting that it has recently performed even worse than the stock market. The Mad Money host called cryptocurrencies “the last bastion of rampant speculation” and noted that they are what “the Federal Reserve is trying to wipe out to curb inflation.”
While acknowledging the Fed’s efforts against inflation, he said that “there is still a lot of inflation out there.” He cited housing, retail, commodity, transportation, wage, and financial inflation, noting that the latter is also known as speculation. The Mad Money moderator believes that the Fed has won against all inflation except wage inflation. He said, “Because I think the Fed is starting to make real progress in the fight against inflation.
He elaborated, “There is one front in the war against inflation where the Fed is winning outstandingly and completely, and that is the war against financial speculation.”
With the confiscation of crypto, the Fed’s job is almost done, but they don’t seem to know it yet.
Cramer noted that the crypto sector has been hit hard in recent weeks, citing that several major crypto companies are facing solvency crises while some are laying off employees. He cautioned investors about crypto lenders offering “exorbitant” returns.
The Mad Money host opined that.
I know miserable stock owners love the company, but this crypto decline is the mother of all miseries, and I think it’s a fitting coda to the horrendous quarter.
“Cryptocurrencies of all kinds are still chained together with no real bottom in sight,” Cramer argued, noting that crypto is “the opposite of a stable accumulation of value.” He said recently he expects bitcoin to fall to 12K.
Noting that wage inflation is the Fed’s remaining battleground, Cramer concluded.” The stock market now reflects a lot of bad news … But the Fed is still dismantling the good stuff, and they will continue to do so until unemployment starts to surge, which I think will happen after a massive, perhaps 100basis point rate hike.” He concluded.
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