Peter Schiff Says Chuck Schumer Wrong 'As Usual' About Debt Ceiling: 'American Families Will Suffer More If...'

Peter Schiff, chief economist and global strategist at Euro Pacific Capital, has said increasing the debt ceiling would impact Americans in a negative manner in the long run.

His remarks came in response to statements made by Sen. Chuck Schumer, Majority Leader (D-NY) in an interview with ABC This Week in which he explained the potential impact of the debt ceiling not getting raised.

Also Read: How To Invest In Startups

"If we don’t renew the debt ceiling, average American families will be clobbered. Their interest rates would go up, their pension savings would go down. The cost of a house would go up," Schumer said.

"McCarthy says he wants to attach certain spending cuts to do this. A. Where is your plan, Mr. McCarthy? He says he wants cuts, we ask him which ones, he won’t say any.”.

Schiff said Schumer was wrong “as usual” and American families may have to bear the brunt in the long term if the debt ceiling is raised.

Purchasing Power: The economist said raising the debt ceiling would lead to higher inflation and destroy purchasing power.

"Politicians who claim they won’t cut #SocialSecurity, but then vote to raise the #DebtCeiling are lying. Raising the debt ceiling guarantees higher #inflation that will destroy the purchasing power of future Social Security benefits. COLA’s [cost-of-living adjustment] won’t come close to covering the loss," Schiff said in his tweet.

Last week, Schiff expressed skepticism about the Inflation Reduction Act, which he said would not do much in reining in price hikes but may, in turn, cause higher inflation.

Read Next: Paul Krugman Sees Inflation Uptick In Tuesday’s Print: ‘Whether It’s Actually Good Or Bad News Will Depend On…’