Friday, December 18, 2015

Peter Schiff: Fed Is Going to Push Rates Into Negative Territory Next Year

 Peter Schiff on CNBC yesterday said the U.S. economy is "rapidly going into a recession."

"I think symbolically just to show that they have confidence in the economy that they have no confidence in, [the Fed] raised rates to 25 basis points," he said.

And went on to declare, "They're going quickly have to reverse course next year. They are going to bring rates into negative territory ... and they're going to do QE4 and it's going to be bigger than ever."

I see no indications of a recession at this time and it is extremely unlikely that the Fed is going to take rates next year into negative territory. In my view, we are at the start of a muti-year climb in rates.



  1. Robert, you live in San Fran where everything is booming. In middle America things are slowing down. My brother just got laid off from his job at Volvo Powertrain. Almost all shipping and freight related companies and going into a slowdown. That may have something to do with lack of demand for company inventories which statistics show are very high. Do you not see that the stock market is also very overvalued and ready to roll over. There is no energy to push the market past the May highs. Time wise, the multi year market rally is long in the tooth. I think Yellen wants the market to decline a bit so that sentiment will turn to favor more aggressive easing.

  2. What an incredible time for someone of the peerless intellectual and moral calibre of a Mises to be analyzing and commenting on the world's political economy right now! We need him now more than ever.