Peter Schiff Slams US Monetary Policies As Starbucks Shares Tumble 13% In Pre-Market: 'Rising Prices...Forcing Their Customers To Cut Back'

Economist Peter Schiff warned that inflation has turned premium coffee and many other goods into a luxury that consumers can no longer afford.

What Happened: On Wednesday, Schiff took to X, formerly Twitter, to comment on the pre-market dip in Starbucks Corporation SBUX shares. The company’s stock fell by 13% following an earnings miss and a cut in its guidance.

“Rising prices, not just for #coffee but everything else, are forcing their customers to cut back. #Inflation means that premium coffee is a luxury that many consumers can no longer afford,” he wrote.

In another post, he pointed out that April was the first month to record a decline since October 2023, with the Dow Jones experiencing its most significant monthly drop since September 2022.

“Tomorrow, Rate Cut #Powell needs to fly to the rescue riding a Great White Dove,” he wrote.

See Also: Fed’s Preferred Inflation Gauge Outstrips Expectations: ‘Rate Cuts Aren’t Necessary For The Bull Market T

Why It Matters: The Federal Open Market Committee is set to meet on Wednesday, with investors anxiously awaiting any changes in the central bank’s stance on inflation. While Wall Street analysts widely agree that the Fed will maintain interest rates at the meeting, the focus has shifted to the potential scope and timing of an anticipated rate-cutting cycle.

In a previous public appearance, Fed Chair Jerome Powell emphasized the need for more time for policy to take effect. This comes as the latest inflation data failed to instill confidence in the Fed's ability to reach its 2% target.

Schiff previously warned of a far more devastating outcome than the 2008 global financial crisis. He criticized Powell’s ‘misguided’ optimism and the Federal Reserve’s inclination towards three rate cuts this year.

Read Next: Former Democratic Senator Says Biden’s New Capital Gains Tax Proposal Aimed At Billionaires Has ‘No Chance’ Of Passing

Photo via Shutterstock