Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
NEW YORK ( TheStreet) -- The Federal Reserve will have to stop its stimulus eventually, Jim Cramer said Monday on "Mad Money," but this week's Fed meeting will not be the big, bad event that everyone is fearing.
Cramer reminded viewers Fed Chairman Ben Bernanke is a student of history and knows all too well the lessons of 1937 when the government thought the Great Depression was over and raised taxes prematurely. That move sent the economy back into recession, he noted, and today's Fed won't make the same mistakes twice.
There's simply not enough evidence that it's 1937 all over again, said Cramer, which is why he expects this week's Fed meeting to result in just more of the same.Cramer said it's true that the housing market is heating up, but the quick spike in mortgage rates will likely cool things off in a hurry. Home prices are making some homeowners spend more but many more still are not. Unemployment is nowhere near the Fed's target of 6.5% and there simply aren't a lot of construction jobs being formed yet. Overseas, our allies aren't in great shape either, said Cramer, with Europe still weak, Japan still in question and many emerging markets just in a constant state of flux. So is now the time to begin withdrawing stimulus or is it 1937 all over again? Cramer said the answer is clear: The Fed needs to stay the course until many of these metrics begin to improve.