Economist and founder of Schiff Gold, Peter Schiff, shared his views on the economic outlook and interest rates post the Federal Reserve’s dovish pivot in December.
What Happened: In a recent video on his YouTube channel, Schiff expressed concern that the jobs created during President Joe Biden‘s tenure mainly went to those already employed. He emphasized the adverse impact of inflation, with individuals taking on additional jobs, cutting leisure, and resorting to borrowing, resulting in record-high credit card debt and surging auto delinquencies.
“The economy is a disaster,” Schiff declared, asserting that Fed Chair Jerome Powell had essentially “surrendered in the war on inflation” due to the weak economy.
Powell’s suggestion to start cutting rates before inflation falls to the 2% target reflects an attempt to prop up growth by creating more inflation, Schiff said.
“The reason he said he wanted to start cutting in advance is he didn’t want to overshoot, meaning he didn’t ...