Peter Schiff Slams Powell's Outlook On CPI, Says 'Inflation Will Stay Well Above Fed's 2% Target'

Peter Schiff, a well-known gold bull, recently challenged Jerome Powell’s claim that inflation is a consequence of consumer expectations, highlighting the role of excessive government spending and deficits.

What Happened: On Tuesday, Schiff took to Twitter to question Federal Reserve Chair Jerome Powell’s perspective on inflation. He disputed Powell’s assertion that inflation is driven by consumer expectations, attributing it instead to persistent government overspending and deficits. Further, Schiff warned of the potential for inflation to surge beyond the Fed’s 2% target if the Fed reverts to Quantitative Easing (QE).

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This criticism comes in the wake of Powell’s recent press conference following the Federal Reserve’s decision to maintain the federal funds rate within the 5.25% to 5.5% range.

Why It Matters: Schiff’s skepticism about the effectiveness of the Fed’s policies isn’t new. In September, he had speculated that the Fed might have “secretly given up” on its 2% inflation target, suggesting that the central bank might quietly abandon price stability as a core mandate.

With consumer price inflation data looming, Schiff’s comments underscore a growing concern among some economists about the Fed’s ability to control inflation amidst ongoing government spending and economic uncertainty.

Photo Courtesy: Wikimedia Commons

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