Fox Business - Peter Schiff: Inflation Tsunami Will Slam US
Article by Jonathan Garber in Fox Business Channel
The Federal Reserve’s easy money policies are going to bring the inflation boogeyman back to America with a vengeance, according to Peter Schiff, chief executive officer and president of the Westport, Connecticut-based Euro Pacific Capital.
The Fed, at the conclusion of its two-day policy meeting on Wednesday, said it expects to hold its key interest rate unchanged throughout 2020 before hiking one time in 2021. But Schiff thinks the central bank’s next move will be a rate cut and that it will happen sooner than anyone thinks.
“The reason the Fed had to start cutting rates was because last year the air really started to come out of that bubble,” Schiff told FOX Business’ Liz Claman on Wednesday. “So the Fed had to blow some air back in, so this is not a strong economy, it’s never been a strong economy. The whole thing is an illusion.”
“We are going to be hit with a tsunami of inflation in this country,” Schiff said, adding that he sees the U.S. spiraling into an “inflationary depression.”
Schiff points to the high levels of U.S. debt as eventually leading to an explosion in inflation.
“Can you imagine a Fed, if they let the official inflation rate get to 3, 4, 5 percent having to jack up interest rates to 7, 8, 9 percent to fight that inflation with all the government debt, with all the corporate debt, with all the consumer debt, this economy would implode like never before,” Schiff concluded.
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