Peter Schiff: ‘We Will Have Inflation And Recession At The Same Time’

Wednesday, August 29, 2018
By Paul Martin

Mac Slavo
August 28th, 2018

Peter Schiff, who accurately predicted the 2008 financial crisis has said in a recent podcast that the Federal Reserve is going to let the “inflation genie out of the bottle.” And Schiff says this warning comes directly from the Fed’s own chairman, Jerome Powell.

In his podcast from August 24, Schiff warns that inflation is going to impact us all very soon. Schiff based this assessment on a speech given by Powell at Jackson Hole.

“What Powell is saying is, ‘We are not going to do anything to make sure that the inflation genie stays in the bottle, but if the inflation genie actually escapes the bottle, and we don’t think that she’s going to; we think the genie is happy hanging out in the bottle. But if for some reason she gets free, well then, we’re going to do whatever it takes to get her back in there, especially considering the vulnerability of the US economy.’” –Peter Schiff

According to Seeking Alpha’s assessment of the podcast, Schiff noted that the strength of the dollar and the weakness in gold have primarily been driven by expectations of aggressive central bank monetary tightening.

“If what Jerome Powell said today causes traders to second-guess those assumptions and maybe dial back their expectations for rate hikes, maybe not necessarily the two rate hikes that everybody believes that are coming in the balance of 2018, but potentially they idea there may be no rate hikes at all coming in 2019 and that 2018 may be the end of it, and in fact, maybe we won’t even get the December rate hike. I think to the extent that traders start to reprice the odds of future rate hikes, this could be a big move in the dollar, a big move in gold.” –Peter Schiff

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