Peter Schiff: Fed Money Magicians Running Out Of Rabbits

Most people think everything is fine. The Fed is getting inflation under control and soon they’ll be able to cut interest rates, keeping the economy from falling into a deep recession. In his podcast, Peter Schiff poured cold water on this narrative. He explains why the Fed won’t be able to repeat the magic it pulled off after the financial crisis and COVID.

Oil prices continued to climb last week. Meanwhile, bond yields also continue to push higher.

As Peter pointed out, one of the big reasons CPI came down so quickly was falling energy prices.
People forget oil prices fell almost 50% from their peak, and that fall ended in May of this year. But that big decline in oil prices was a major factor in bringing headline inflation from 9% to 3%. And it’s not just the rate hikes that did it. I mean, they were partially responsible because the rate hikes pushed up the dollar and the dollar going up brings oil prices down.”

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