CNBC’s Jim Cramer on Thursday said that the rapid slide in the cryptocurrency market shows that the Federal Reserve is making progress in its arduous struggle to reduce inflation.
“There is one front in the fight against inflation, which is an all-out victory for the Fed, and that is the fight against financial speculation,” he said.
“With the destruction of cryptocurrencies, the Fed’s job is almost done, but they don’t seem to know it yet. … They’re just about to throw people out of work to make it clear that inflation is inflationary. is a thing of the past,” he added.
The “”Crazy money“the presenter’s comment came later bitcoinThe world’s largest cryptocurrency, completed worst month on record. The coin has dropped more than 38% in June while ether, the second largest cryptocurrency by market capitalization, lost about 47% of its value.
Large companies in the market face a solvency crisis, ax and an exodus of investors selling off their holdings. While some bitcoin advocates expect the market to recover, others are skeptical.
“I know stock holders love the company miserably, but this crypto drop is the mother of all miseries and I think it’s a coda fit for a company,” Cramer said. bad quarter,” Cramer said.
He added that while the Fed is making progress in reducing financial speculation, it still needs to control wage inflation and increase unemployment to really win the war on inflation.
“The stock market is reflecting a lot of bad news right now… but the Fed is still dismissing the good and they’re going to keep doing that until the unemployment rate starts to rise, which I suspect will. happens after a big rate hike, maybe 100 basis points,” he said.