After the Federal Reserve’s rate hike on Wednesday, economist Peter Schiff has much to say as the US central bank raised the benchmark rate by half a percentage point. Schiff further acknowledges that we are in a recession and says, “It will be worse than the Great Recession after the 2008 financial crisis.”
‘The Fed Can’t Win the Battle Against Inflation Without a Recession’, Says Peter Schiff
While many analysts were surprised by the US Federal Reserve’s move, as it was the biggest rate hike since 2000, a report by schiffgold.com said the hike was hardly “aggressive” and “weak swings that shadow boxed”. Looks like”. In addition, reports suggest that there were some “subtle changes” to Powell’s remarks this week, suggesting there may be “some economic turbulence on the horizon.”
Peter Schiff doesn’t think the Fed can beat the current inflationary pressures the US is dealing with today. “Not only can the Fed not win the battle against recession-led inflation, it can’t do so without creating a far worse financial crisis than we did in 2008,” Schiff said. Explained on Thursday. “What is worse is that the war against inflation cannot be won if there is any relief or incentive to ease the pain,” the economist said.
i remember how strong #Share Market Pundits and economists thought the US economy was just before the 2008 financial crisis, even though we were already in the Great Recession at the time. It wasn’t strong, it was about to burst a bubble. Today’s economy is an even bigger bubble!
— Peter Schiff (@PeterSchiff) 5 May 2022
Schiff’s remarks come a day after the Fed raised the federal funds rate from 3/4 to 1 percent. After the rate hike, the stock market did a great deal, fully recovering from the losses of the first day. Then on Thursday, equity markets shook, and the Dow Jones Industrial Average had its worst day since 2000. All major stock indices were affected on Thursday and the cryptocurrency markets saw similar declines.
“If you think the stock market is weak, imagine what will happen when investors finally know what’s next,” says Schiff. tweeted on Thursday afternoon. “There are only two possibilities. The Fed does what it takes to fight inflation, creating a far worse financial crisis than it was in 2008 or the Fed letting inflation go away. Schiff Continuous,
The Fed created the 2008 financial crisis by keeping interest rates too low. Then it dumped its filth in the inflation rug. Now that the inflation chickens it left behind are coming home, it will have to create an even bigger financial crisis to clean up an even bigger mess.
Schiff criticizes Paul Krugman, Fed tapering includes monthly caps
Schiff is not the only one who believes that inflation cannot be controlled, as many economists and analysts share the same view. Robert Kiyosaki, author of the best-selling book Rich Dad Poor Dad, recently said that hyperinflation and depression are here. Well-known hedge fund manager Michael Burry tweeted in April that “the Fed has no intention of fighting inflation.” Criticizing the US central bank, Schiff also conducted raids against American economist and public intellectual Paul Krugman.
“Back in 2009, [Paul Krugman] Foolishly claimed that QE would not create inflation,” Schiff said, “Keeping QE inflation aside, Krugman took credit for being premature because he did not understand the gap between inflation and rising consumer prices. The CPI is about to explode further.” Also, of schiffgold.com Author Michael Mahre also scoffed at the Fed’s recent tapering announcement. Mahare further elaborated on how the Fed plans to reduce the Federal Reserve’s holdings of securities over time.
“As far as the nuts and bolts of balance sheet reduction go,” Mahre said, “central banks to roll out balance sheets in June-July with $30 billion in US Treasuries and $17.5 billion in mortgage-backed securities and August. That total is $45 billion per month. In September, the Fed plans to accelerate to $95 billion per month, including $60 billion in balance sheet treasuries and $35 billion in mortgage-backed securities. Billion shortfall.
What do you think of Peter Schiff’s recent remarks regarding the Fed fighting inflation and rate hikes? Let us know what you think about this topic in the comment section below.
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