When does the fourth round of quantitative easing begin? That’s what Peter Schiff, president and CEO of Euro Pacific Capital, wants to know.
Speaking in an interview with CNBC recently, Schiff argued the notion that this is “a fake rally.” He stated that the United States economy would need to accelerate drastically “just to get to mediocre.”
Moreover, the contrarian investor averred that the Federal Reserve can’t increase interest rates any further because the central bank doesn’t want “to poke too many holes in this bubble.”
“This recovery was never real, it’s phony, it’s just another Federal Reserve bubble just like the one that popped in 2008, only this one is even bigger,” said Schiff.
“What we really should be talking about is not when the Fed will hike rates, but when they will admit the economy is a lot weaker than they expected and when the next rate cut and when they will launch QE4?”
The general consensus right now is that the Fed will raise interest rates twice this year. It should be noted, however, that many of the economists polled aren’t as confident in this prediction as they were previously.
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