Mad Money’s Jim Cramer says crypto burn shows Fed’s job of taming inflation is almost complete – markets and prices

Mad Money host Jim Cramer claims that “with crypto burning, the Fed’s job is almost done.” He emphasized that “One front in the fight against inflation that has been an outstanding overall victory for the Fed” is the fight against financial speculation.

Jim Cramer on Fed Policy, Inflation, Crypto

Jim Cramer discussed crypto and the Federal Reserve’s fight against inflation on CNBC show Mad Money on Thursday. Cramer is a former hedge fund manager who co-founded, a financial news and literacy website.

He started by stating, “Crypto doesn’t protect you against anything — not at all,” including stock prices, noting that it has underperformed the stock market even more recently. The Mad Money host called cryptocurrency “the last bastion of rampant speculation,” noting that it’s something “the Federal Reserve is trying to wipe out to tame inflation.”

While acknowledging the Fed’s anti-inflation efforts, he said, “We still have a lot of inflation out there.” He cited housing, retail, commodities, transportation, wages and financial inflation — the latter also known as speculation. The Mad Money presenter believes the Fed has beaten all of the inflation types he mentioned, with the exception of wage inflation. “I think the Fed is starting to make real progress on inflation control and I applaud it,” Cramer said.

“There is one front in the fight against inflation that has been an outstanding overall victory for the Fed, and that is the fight against financial speculation,” he explained, elaborating:

With crypto burning, the Fed’s job is almost done, but it doesn’t seem to know it yet.

Cramer pointed out that the crypto sector has suffered severe setbacks in recent weeks, citing that some large crypto companies are facing solvency crises while some employees are being laid off. He warned investors about crypto lenders offering “outrageous” yields.

The Mad Money host said:

I know miserable stockholders love company, but this crypto decline is the mother of all woes, and I think it’s a fitting coda to a terrible quarter.

“Cryptocurrencies of all types are still cascading with no real bottom in sight,” Cramer claimed, noting that crypto is “the opposite of a stable store of value.” He recently said that he expects Bitcoin to fall to $12,000.

Noting that wage inflation is the Fed’s remaining battleground, Cramer concluded, “The stock market is reflecting a lot of bad news now…but the Fed is still cutting the good news and it will continue to do so until the unemployment rate starts to rise.” which I suspect will happen after a big rate hike of maybe 100 basis points.”

What do you think of Mad Money host Jim Cramer’s comments? Let us know in the comments section below.

Kevin Helms

As an Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economics and cryptography.

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