Stagflation Is Here and the Fed Is Clueless
In Sunday’s episode of the Peter Schiff Show, Peter tackles the misguided optimism of the Federal Reserve, the dangers of escalating tariffs, and the troubling signs of entrenched stagflation. Peter takes a critical view of Jerome Powell’s policies, scrutinizes the logic behind rate cuts amidst ongoing inflation, and warns investors that Bitcoin will continue to falter in the coming economic environment as gold gains strength.
Peter begins by highlighting the alarming disconnect between economic data and Fed policy, recalling Jerome Powell’s flippant dismissal of stagflation concerns last year:
So first let me talk about the economic data, because all the economic data points to stagflation, and of course, I’ve been out in front of the stagflation scenario for a long time. I’ve been very critical of the Fed, Powell in particular, for dismissing stagflation. In fact, during his May press conference a year ago, 2024, so almost a year ago, May 1st, he was asked about stagflation, and then he kind of joked and he says, ‘I don’t know what people are talking about—I don’t see the stag, and I don’t see the inflation.’ That kind of made him laugh, and everybody else laughed. I pointed out on this podcast that it’s no laughing matter, because the Fed’s blindness to stagflation, and the comment that there’s no sign of stagflation, is going to go down like ‘subprime is contained’ and ‘inflation is transitory.’
As policy missteps compound, Peter points to the impending car tariff
Article from LewRockwell
LewRockwell.com is a libertarian website that publishes articles, essays, and blog posts advocating for minimal government, free markets, and individual liberty. The site was founded by Lew Rockwell, an American libertarian political commentator, activist, and former congressional staffer. The website often features content that is critical of mainstream politics, state intervention, and foreign policy, among other topics. It is a platform frequently used to disseminate Austrian economics, a school of economic thought that is popular among some libertarians.
