For most of 2015, the general consensus of economists, financial analysts and pundits was that the Federal Reserve was going to increase interest rates for the first time in nearly a decade. Only a handful of people in the media thought it wasn’t going to happen, and that turned out to be Peter Schiff (SEE: Peter Schiff was right AGAIN – Federal Reserve won’t hike interest rates).
That’s right. Schiff, who had been ridiculed consistently on CNBC for his stance that a rate hike wasn’t in the near future, was vocal about how he felt the United States central bank was holding off any sort of rate hike.
Schiff spoke with CNBC on Tuesday and explained that he never really thought Fed Chair Janet Yellen was going to hike interest rates. He thinks that zero interest rates are here to stay since “this is a gigantic bubble.”
“We are stuck at zero, this is a gigantic bubble,” Schiff said. “The last thing the Fed wants to do is prick it, but the air is coming out by itself. Just keeping rates at zero is not enough to support this market.”
According to Schiff, the Fed will implement another round of quantitative easing, “to the detriment of the real economy.”
“This economy is rapidly decelerating. The Fed just doesn’t want to acknowledge that its monetary medicine didn’t work.”
He added that he likened the Fed seven years ago to a “monetary roach motel.” Schiff also said the economy will suffer “a worse crisis than 2008.”
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