- Peter Schiff, Chief Economist at Europac, disputes Fed Chair Jerome Powell’s view.
- Powell says, “Moderation of inflation up ahead.”
- “Powell is far too political to level with the public,” says Schiff.
Peter Schiff, founder of Schiffgold, gets ready to go live on Fox Business to tell the public the “truth” about inflation and the economy. Schiff responds to Federal Reserve Chair Jerome Powell’s optimistic signals on the US economy and inflation in his latest Tweet.
In an interview with Liz Claman, business news anchorwoman at FoxBusiness, Schiff is all set to disagree with Powell’s observation as he feels “Powell is far too political to level with the public about just how bad things are about to get.”
According to reports, the Federal Reserve raised rates by 25 basis points on Wednesday. Jerome Powell, the Fed Chair, observes this as a clear indication that inflation is coming down and the US will avoid a recession this year.
Powell says that the disinflationary process has started and goes on to express that there will be no rates cut this year, unlike the projections of major strategists. Additionally, he is not considering the bond market cuts as some market participants are hoping for a quicker fall in inflation.
His optimistic view on the US economy is being met with both challenge and applause by many experts in the market. Amongst his supporters include Charlie Ripley, senior investment strategist for Allianz Investment Management.
Slowing the pace of rake hikes to 25 basis points is a clear sign that the central bank is getting comfortable with the idea that the prescribed policy for the economy is finally starting to work.
Yung-Yu Ma, BMO Wealth Management’s chief investment strategist, feels that the ingredients for a soft landing are falling into place and peak hawkishness is put behind. However, Powell also says that the Fed planned to be cautious about declaring victory over inflation.
The crypto market saw Bitcoin burst above $24K during Powell’s talks of disinflation and saw an overall market cap increase by over $40 billion in the hours after the announcement. According to Coinmarketcap, the global crypto market is now at $1.09 trillion, up 3.88% over the last day in comparison to the markets trading sideways from before.