On CNBC's "Futures Now" Thursday, Peter Schiff said that while Americans are wrapping presents this holiday season, they should instead brace themselves for "a horrible Christmas" and possible recession.
"I expect [job] layoffs to start picking up by the end of the year," Schiff said, pointing to retailers as the first victim. "Retailers have overestimated the ability of their customers to buy their products. Americans are broke. They are loaded up with debt," he said. "We're teetering on the edge of an official recession," and "the labor market is softening."
"The Fed has to talk about raising rates to pretend the whole recovery is real, but they can't actually raise them,"he saidl. "[Fed Chair Janet Yellen] can't admit that she can't raise them because then she's admitting the whole recovery is a sham and that the policy was a failure."
WOW, my view is diametrically opposite from what Peter is saying here.
We are in the boom phase of the Fed created boom-bust cycle. We are nowhere near a recession and it remains extremely likely that the Fed will raise rates by 25 basis points., most likely at the December FOMC meeting. The first of multiple rate hikes over coming years.