Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Peter Schiff warns Fed’s rate cut will lead to economic collapse

Peter Schiff warns Fed’s rate cut will lead to economic collapse

GrafaGrafa2024/09/19 02:35
By:Mahathir Bayena

Economist and gold advocate Peter Schiff has raised concerns over the Federal Reserve's recent decision to cut interest rates by 50 basis points, signaling what he believes could spell disaster for the U.S. economy. 

Schiff took to social media to warn that the rate cut would not only push the economy deeper into recession but also fuel inflation, worsening the situation further. 

"It’s game over for the Fed," Schiff emphasised. 

In a series of posts, Schiff argued that the Federal Reserve's move is unlikely to stop the economy from cooling off. 

Instead, he suggested that it would turn up the heat on inflation, intensifying economic problems. 

Schiff also pointed out that the decision triggered significant reactions in key markets

He noted, "Not only did the Fed’s 50 basis point rate cut send gold to a record high above $2,595, but it also sent the U.S. dollar sinking below 0.84 Swiss francs, a new 13-year low." 

Schiff has long been critical of the Federal Reserve’s monetary policies, often linking them to rising inflation and a weaker U.S. dollar. 

He warned earlier that the rate cut would lead to a return to quantitative easing (QE), which he believes would pile on more debt and send consumer prices soaring. 

He stated, "The Fed’s policy mistake will crush the dollar and reignite inflation." 

In his commentary, Schiff highlighted the potential disconnect between stock market performance and economic reality. 

"Analysts claiming the stock market isn’t pricing in a recession because it’s trading near record highs still don’t get it. Investors know that a recession means interest rate cuts and a return to QE," he explained. 

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!