Schiff on Fox Business: Inflation Ain’t Dead Yet

On Wednesday, Peter appeared on Claman Countdown with Liz Claman on Fox Business. There he voiced strong opposition to the Fed’s recent decision to cut interest rates by 50 basis points, pointing out that this behavior is what got the economy in trouble in the first place.

Even Michelle Bowman, the sole dissenting member of the Fed’s Board of Governors, was mistaken in advising rate cuts:

“Any cut was gonna be a mistake. I think the Fed caved into the pressure of market expectations and cut 50 when they probably were set to do 25 a week or two ago. But I think they changed their minds. The market is delivering a verdict here. Interest rates are rising. They’re not falling. Long-term interest rates are going up. And I think the Fed rate cut marks the low in long-term treasury yields and mortgage yields. So I think you’re gonna start to see rising interest rates as the Fed cuts rates.”

Reducing interest rates will likely revitalize inflation:

“Inflation is not dead and buried like Powell claims. It’s about to come back for a whole new lease on life. In fact, it never really got close to 2%; the Fed is playing around with numbers. And I think we’re already in a recession. It’s not about how strong the economy is. I mean, that was just all a bunch of talk because he’s trying to talk up the economy because he’s trying to help out Harris and try to continue this false narrative that we have a strong economy.”

When all you have is a hammer, everything looks like a nail. In this case, printing money is the Fed’s only way to delay recession, and we’ll pay for it:

“If Powell cared about inflation, he never would have cut interest rates to zero in the first place or left it there as long as he did. He wouldn’t have done all this quantitative easing. Inflation is the Fed’s tool. That’s the only tool they actually have in their chest for trying to artificially stimulate the economy.”

Check out Peter’s more in-depth analysis in his podcast from Wednesday night.