Peter Schiff: "U.S. Fed Rate Cut? Only Inflation and Long-term Interest Rates Will Rise"
Summary
- Peter Schiff warned about a Federal Reserve rate cut.
- He said that a rate cut, contrary to market expectations, would lead to inflation and an increase in long-term interest rates.
- He mentioned that market hopes for a rate cut might be misplaced.
Peter Schiff, known as a financial market pessimist, has warned about the possibility of a rate cut by the U.S. central bank, the Federal Reserve System (Fed). Contrary to the easing effect the market anticipates, he claims it could actually lead to an increase in inflation and long-term interest rates.
On the 2nd (local time), Peter Schiff, CEO of Euro Pacific Capital, stated on X (formerly Twitter), "If you think things seem bad now, just wait until the Fed cuts rates," and pointed out, "Many people are harboring the false hope that a Fed rate cut will rescue the situation."
He said, "However, the effects of a rate cut will not be what the market expects," adding, "Ultimately, it will result in rising consumer prices and higher long-term interest rates."
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
