I do not believe the Federal Reserve is going to be able to raise interest rates again, that was the reason I thought they were not going to raise them at all. I thought they were smart enough to recognize what the consequences of raising rates would be and that they would not want to put themselves in a box. I guess I overestimated the competency of the Federal Reserve. They raised rates apparently clueless of the havoc it would cause in the markets but I warned everybody of what was going to happen.
Of course since they raised rates, this is the worst start to a year in the stock market in history and in fact its one of the worst months in history of any year. And the U.S. Economy is rapidly returning to recession.
Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.
Jan 25, 2016
What The Federal Reserve Will Do Now
The bottom line is everybody is excited now because we are getting more money printing from Europe and possibly from japan too. That is what is driving everything but it is not over until the Fat Lady sings.
Janet Yellen is going to have to join the chorus. And it is not just about maybe the Fed is going to slow down their tightening. Because they are still projecting four interest rate hikes during 2016. The Fed did not even come out and said anything. The last we heard from anybody at the Fed was that the U.S. Economy was in great shape and their opinions have not changed at all since the rate hike. But for some reason Draghi felt compelled to take one for the team, "we are going to spare no expense, there is no mil it to what we are going to do."
The Fed has this credibility problem. I knew they were going to have this problem if they raised rates. They cannot come out and say, "We are going to ear too", they just tightened! The Fed is going to try, I believe, for as long as possible to delay having to admit that they are going to cut rates or do QE4.
Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.
Janet Yellen is going to have to join the chorus. And it is not just about maybe the Fed is going to slow down their tightening. Because they are still projecting four interest rate hikes during 2016. The Fed did not even come out and said anything. The last we heard from anybody at the Fed was that the U.S. Economy was in great shape and their opinions have not changed at all since the rate hike. But for some reason Draghi felt compelled to take one for the team, "we are going to spare no expense, there is no mil it to what we are going to do."
The Fed has this credibility problem. I knew they were going to have this problem if they raised rates. They cannot come out and say, "We are going to ear too", they just tightened! The Fed is going to try, I believe, for as long as possible to delay having to admit that they are going to cut rates or do QE4.
Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.
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