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Peter Schiff Exposes The Fed’s Game Of Chicken

The Federal Reserve wrapped up its March FOMC meeting yesterday. As expected, there were no policy changes. Interest rates remain at zero. Quantitative easing carries on as it has been. Peter talked about the Fed meeting and Fed Chair Jerome Powell’s messaging in his podcast. He said the Fed is playing a game of chicken with interest rates and inflation.

While the Fed remained dovish in its policy, the FOMC did up its growth outlook and sang a much more optimistic tune about an economic rebound. Nevertheless, Powell made it crystal clear there are no plans for rate hikes for at least two years.

The Fed also didn’t give any indication that it is going to do anything about the continuing rise in long-term bond yields. Peter has likened this to a game of chicken.

Markets reacted positively to the Fed’s messaging. The Dow closed at a record high. But Peter said he wouldn’t be surprised if there isn’t a selloff because he doesn’t think the Fed was dovish enough.

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