Jerome Powell took center stage last week and the Federal Reserve chair didn’t do anything to dampen expectations of a rate cut. His comments sent both stocks and gold higher.
Peter Schiff recently appeared on RT Boom Bust with University of Amherst economics professor Richard Wolff to talk about the Fed and its impact on the markets. Pete said no matter what the Fed does, a recession is coming.
Peter opened the interview saying the main reason the Fed is cutting rates is to try to keep the air from coming out of the stock market bubble.
The other reason is they’re trying to keep this so-called expansion going. There they’re going to fail. I think we’re headed for recession regardless of what the Fed does with rates. The only thing the Fed is going to succeed in doing is reviving inflation. The Fed claims inflation is too low and they want to make sure the rate goes up. Well, that’s going to be their only success. But unfortunately, that’s also going to be their biggest failure.”
Wolff agreed with Peter’s view that a downturn is coming, noting that we are overdue for a recession. He said the sudden dovish turn by the Fed is a “desperate move” by to try to postpone the downturn until after the 2020 election.
The host mentioned a tweet Peter put out during Powell’s trip to Capitol Hill.
Peter said he never heard the question asked, but it would have been a great way to put Powell on the spot and ask him if he agrees with the president.
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