Jim Cramer: “The Fed is almost done with destroying cryptocurrencies”

CNBC Mad Money host and former hedge fund manager Jim Cramer believes the Fed is not really fighting inflation, but financial speculation like cryptocurrencies.

Jim Cramer said the US Federal Reserve is moving in the right direction in fighting inflation and getting rid of financial speculation such as digital currencies. According to him, cryptocurrencies do not protect people from anything, including stock prices, and recently they have performed worse than the stock market.

The TV presenter called cryptocurrencies “the last bastion of rampant speculation” and said that they must be disposed of in order to overcome inflation, which the Fed is doing very successfully. However, Cramer believes that even without cryptocurrencies, there are many areas subject to inflation: retail, housing, transportation, and wages. However, according to Cramer, the Fed managed to cope with almost everything except wage inflation.

“In the war on inflation, there is one front on which the Fed has won a remarkable victory, and that is the battle against financial speculation. With the destruction of cryptocurrencies, the work of the Fed will almost be completed. But it seems that they themselves do not know about it yet, ”said the TV presenter.

He noted that the cryptocurrency sector has been hit hard in recent weeks with some major crypto companies like Coinbase facing a solvency crisis and laying off their employees. Kramer believes that although “cryptocurrencies are holding up for now,” the fall will continue.

Earlier, the TV presenter said that in the coming months, bitcoin could recover to pre-crisis levels, but the main cryptocurrency would not be able to set new records.