Euro Pacific Capital CEO Peter Schiff is sounding the alarm after this week’s market selloff, saying Wall Street and the U.S. economy are on the verge of a recession.

“I think as Americans lose their jobs, they are going to see the cost of living going up rather dramatically, and so this is going to make it particularly painful,” Schiff said.

“This is a bubble not just in the stock market, but the entire economy,” he told Fox News Business.

Schiff is predicting a recession, accompanied by rising consumer prices, that will be “far more painful” than the 2007-2009 Great Recession.

As SHTFplan.com’s Mac Slavo notes, President Donald Trump blamed the recent stock market woes on the Federal Reserve and the rising of interest rates.

“I think the Fed is making a mistake. They’re so tight. I think the Fed has gone crazy,” Trump told reporters on his way to a rally in Pennsylvania on Wednesday.

Trump said that the United States’ central bank is solely responsible for the worst stock market selloff since February, saying the Federal Reserve “has gone crazy.”

Schiff said it isn’t entirely the Fed’s fault, however, because they have been acting “irrationally” for a very long time while slowly adding nails to the economy’s coffin.

“What is crazy is for the Fed to believe that they can raise interest rates without pricking their own bubble,” he said.

“All bear markets start off as corrections. I think this one is probably a bear market. It’s long overdue,” Schiff said on FOX News Business.

Schiff said investors are on the edge of a precipice that foresees a bear market far worse than the stock market crash of 2008.

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