Loading ...Schiff on the Fed’s Reversal
Schiff also talked at length about the Fed’s most recent decision to not raise rates again in 2019.
“The Fed did a reversal. A complete 180,” Schiff says about the Fed’s most recent minutes. “They’re never going to complete the normalization process,” Schiff recounts saying in late 2018 interviews. “I’m one of the only people out there saying the Fed is BSing, but the markets believed it.”
Schiff said either the Fed was deliberately lying in late 2018 when they said they would continue to taper and hike, or that they just didn’t know. Either way, Schiff believes that we are now in the midst of a bear market rally – not a bull market – as a result.
“I said they were going to wait for an excuse to abort normalization because they couldn’t tell the truth. They can’t raise interest rates because there’s too much debt,” he says. “It has nothing to do with problems abroad, it has nothing to do with Brexit.”“This is permanent debt monetization,” he says.