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Peter Schiff: Inflation to Get Worse
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The U.S. annual inflation rate eased slightly to 6.4 percent in January, down from 6.5 percent in December, according to the latest data from the Bureau of Labor Statistics (BLS). This was higher than economists’ expectations of 6.2 percent.
On a month-over-month basis, the Consumer Price Index (CPI) rose 0.5 percent.
Economist and CEO of Euro Pacific Capital Peter Schiff predicts inflation could go back up in the coming months, "I think we're gonna start to see hotter numbers in future months. And that's going to throw cold water on the idea that the Fed is finished and can start cutting rates based on victory over inflation."
The reason he thinks inflation will get worse is, he says, "All the years of quantitative easing put a lot of inflation into the pipeline. And the Fed has barely withdrawn that liquidity, I think we're still seeing the impact of that, especially the inflation that it unleashed during the COVID pandemic. So I still think we have a ways to go to catch up. "
"Meanwhile, government policy is still inflationary, we have very expansionary fiscal policy, the government is running enormous budget deficits, that's highly inflationary. "
He says, "as long as people keep on spending, I don't see any way we're gonna get down to 2%."
On a month-over-month basis, the Consumer Price Index (CPI) rose 0.5 percent.
Economist and CEO of Euro Pacific Capital Peter Schiff predicts inflation could go back up in the coming months, "I think we're gonna start to see hotter numbers in future months. And that's going to throw cold water on the idea that the Fed is finished and can start cutting rates based on victory over inflation."
The reason he thinks inflation will get worse is, he says, "All the years of quantitative easing put a lot of inflation into the pipeline. And the Fed has barely withdrawn that liquidity, I think we're still seeing the impact of that, especially the inflation that it unleashed during the COVID pandemic. So I still think we have a ways to go to catch up. "
"Meanwhile, government policy is still inflationary, we have very expansionary fiscal policy, the government is running enormous budget deficits, that's highly inflationary. "
He says, "as long as people keep on spending, I don't see any way we're gonna get down to 2%."
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