Peter Schiff: Fed Has Already Lost Inflation Fight

From ZeroHedgeposted 2 weeks ago

Article Summary

Last week, the Fed raised interest rates by 0.5%. It was the biggest rate increase since the year 2000. But it was hardly aggressive in light of the current bout of inflation. Not only that, Jerome Powell took a future 75 basis point hike off the table. In his podcast, Peter Schiff argued that no matter what the Fed does, it has already lost the inflation fight.

The stock market collapsed on Thursday after digesting the rate hike. That more than erased the rally last Wednesday in the immediate aftermath of the FOMC meeting.

Peter said he thinks the recent Fed actions don’t matter. The markets are going down for reasons other than a 50 or 75 basis point rate hike.

Either hike is inadequate for the task at hand. It doesn’t matter. It’s too little, too late. Fifty, 75, 100 — the Fed is not in a position to raise interest rates anywhere near enough to slow down inflation. But any attempt to raise interest rates, even slightly, will prick the bubble, which it’s already done, and the air is coming out. So, the Fed will succeed in killing the economy, but it will not kill inflation.”

 

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