3 bold statements just in the headline, but even CNBC granted that Schiff deserved to take what it called a “victory lap.”
Schiff argues that the Fed does not plan to raise rates at all because it can’t raise rates. 7 years ago with the start of ZIRP and QE Schiff says the Federal Reserve entered a “monetary roach motel.” That the Fed is now stuck. Which is of some concern to say the least.
It should be noted also that there seems to be a lot of talk about less than 0% interest rates as of late (LZIRP). So what does that tell you?
This economy is rapidly decelerating and the Fed just doesn’t want to acknowledge that its monetary medicine didn’t work and the patient is now sicker than ever,” said Schiff. “So the Fed just wants to maintain the pretense that they are going to raise rates but in the end they don’t actually want to do it,” he added. “[Yellen] is going to pretend they can raise rates and pretend it’s right around the corner but will keep coming up with one excuse after another to why they aren’t doing it.”