Peter Schiff: Federal Reserve can’t raise rates without bursting bubbles

The main talk on Wall Street – besides falling oil prices – is the Federal Reserve’s move to either raise interest rates next summer or keep them at near zero. Although it was a certain among economists and financial experts a month ago that the United States central bank would hike rates, now it isn’t as popular a notion.

Peter Schiff, CEO of Euro Pacific Capital, believes that if the Fed does raise rates then it will have to burst some bubbles in the stock market, something that Fed Chair Janet Yellen conceded this past summer. She noted that the Fed wouldn’t increase interest rates just to burst a few bubbles. Regardless, this would be the result if it does move ahead with raising rates.

Schiff, who appeared on the Fox Business Network and cited a number of other negative economic reports, over the weekend to discuss the very same possibility.