Economist Peter Schiff has warned about an impending “full-blown financial crisis” that he expects to hit the U.S. economy before the Federal Reserve reaches its inflation target. He further predicted that the financial crisis will force the Fed to raise its inflation target.
Peter Schiff’s Latest Warnings
Gold bug and economist Peter Schiff warned of an impending U.S. financial crisis in a series of posts on the X social media platform this week.
Commenting on Federal Reserve Chairman Jerome Powell’s speech at the central bank’s Jackson Hole symposium regarding inflation on Friday, Schiff wrote: “During his Jackson Hole speech, Powell admitted that the Fed still has a long way to go to achieve its 2% inflation target.” The gold bug exclaimed:
That’s a gross understatement, as a full-blown financial crisis will ensue long before the target is hit, forcing the Fed to raise the target above 2%.
In a follow-up post, the economist wrote: How can Powell give a speech about inflation and ignore the elephant in the room? The primary driver of inflation is soaring federal budget deficits. Despite his claims of Fed independence, Powell refuses to criticize [President Joe Biden]. That ensures the inflation problem will get worse.”
On Wednesday, Schiff detailed on X:
The greatest threat to America is not foreign, but domestic. It’s not Russia or China. It’s our own federal government and Federal Reserve.
“They represent a far greater threat to our individual liberty, prosperity, posterity, and Constitution,” he opined.
In a recent interview on Real America, Schiff criticized Bidenomics. While the Biden administration is touting its success, Schiff noted: “What has Biden done other than increase government spending and add extra regulations into the economy?” He opined:
There’s nothing economic about that. It’s just a complete disaster.
Schiff has repeatedly warned about an impending financial crisis. Earlier this month, he cautioned: “Investors still don’t understand the Fed can’t come close to putting the inflation genie back in the bottle without creating a far greater financial crisis than 2008.” In March, the economist described: “The Fed is once again responsible for another financial crisis, but it’s not the interest rate hikes, but the prior rate cuts that are to blame. As I said from the beginning when the Fed cut rates to zero it made a deal with the devil. The devil finally showed up to collect.”
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