Peter Schiff Warns Investors of 2 ‘Huge Surprises’ — Foresees Inflation Too High for Fed Rate Cuts to Stimulate Economy

Economist Peter Schiff says investors are successful for “two immense surprises.” Noting that the Federal Reserve has already mislaid its combat against inflation, helium explained that by the clip the U.S. system officially enters a recession, ostentation volition beryllium excessively precocious for the Fed to “stimulate” with involvement complaint cuts.

Peter Schiff Sounds Alarm connected U.S. Economy

Economist and golden bug Peter Schiff issued aggregate warnings astir the U.S. system successful a bid of tweets this week. He wrote connected Wednesday:

Investors are successful for 2 immense surprises. The archetypal is that aboriginal ostentation rates volition beryllium overmuch higher than they think. The 2nd is that the Fed won’t beryllium consenting oregon capable to bash what it takes to combat it.

Following the U.S. Bureau of Labor Statistics report, released Thursday, that the user terms scale (CPI) roseate 3.2% from a twelvemonth agone successful July, Schiff tweeted: “Don’t judge the fiscal media’s rotation that July’s 3.2% YoY CPI rise, with YoY halfway astatine 4.7%, means the Fed is winning its warfare against inflation. Core is bottoming, and the header fig is astir to emergence sharply, led higher by surging lipid prices. The Fed has already lost.”

The Bureau of Labor Statistics besides reported Friday that the shaper terms scale (PPI), which gauges the costs that goods and services producers person for their products arsenic opposed to those that consumers pay, roseate 0.3% for the month.

“Today’s hotter than expected .3% emergence successful July PPI is lone the beginning. Future, adjacent larger upside surprises are coming,” Schiff tweeted successful effect to the PPI report. He opined:

The worst portion is that by the clip the U.S. system officially enters a recession, ostentation volition beryllium excessively precocious for to the Fed to ‘stimulate’ with complaint cuts.

Schiff has regularly warned astir the U.S. system and the U.S. dollar. Earlier this month, helium said the USD’s illness is “inevitable,” advising radical to get retired of the dollar now. He has besides repeatedly cautioned that the Fed has already lost its ostentation fight but the markets person not figured that retired yet.

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