The Economy Is Going To Fall Into a Severe Recession

Peter Schiff: "I think the economy is going to fall into a severe recession."

Markets: Interest Rates, Federal Reserve

The Federal Reserve is raising interest rates and the higher rates are going to be problematic even more so now than they were back then because we have a lot more debt. But I don't think they will succeed in raising rates as high as they did before. I think the tipping point is going to come much lower if it hasn't already come.

I do think that they're gonna abort these interest rate hikes much sooner than people think. Potentially they could use the trade war and it's unexpected negative effect on the economy as the excuse to do what they were gonna do anyway, which is  to call the whole cycle off and start cutting interest rates again and going back to quantitative easing. That's where we're headed.