Peter Schiff: The FED is Making a Move Not Seen Since the 1980s – And it’s Only Just Starting!

by | May 31, 2023 | Self Directed IRA

Peter Schiff: The FED is Making a Move Not Seen Since the 1980s – And it’s Only Just Starting!




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The Federal Reserve has just made a major move, and it’s causing quite a stir in the financial world. According to Peter Schiff, CEO of Euro Pacific Capital, this is the most significant move by the Fed since the 1980s.

So, what exactly is going on? On March 31st, the Fed announced a significant change in its policy. Rather than continuing to target a 2% inflation rate, it will now aim for an average inflation rate of 2% over time. This means that the Fed will allow inflation to run higher than 2% for a period of time to make up for periods when inflation was below 2%.

Why is this such a big deal? First, it’s a significant departure from the Fed’s previous policy, which has been in place for over a decade. During that time, the Fed has consistently aimed for a 2% inflation rate. Second, it signals a major shift in the Fed’s thinking about the economy. The Fed’s new policy recognizes that inflation has been consistently below 2% for several years and that it may take some time for inflation to reach that target.

What does this mean for the economy and investors? It’s difficult to say for certain, but there are some potential implications. First, the Fed’s new policy could lead to higher inflation in the long run. By allowing inflation to run higher than 2%, the Fed is essentially creating more room for prices to go up. Second, it could lead to more volatility in the financial markets. Investors may react unpredictably to the new policy, causing sudden swings in stock and bond prices.

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According to Schiff, the Fed’s move is a sign that it is becoming increasingly concerned about the state of the economy. He argues that the Fed is trying to signal to investors that it is willing to do whatever it takes to keep the economy afloat. However, he also warns that the Fed’s policies could lead to unintended consequences, such as a weaker dollar and higher prices for goods and services.

Overall, the Fed’s policy change is a significant development that bears watching. As the economy continues to experience unprecedented challenges, it’s clear that the Fed is willing to take bold steps to try and keep things on track. Whether those steps will lead to a stronger economy or unintended consequences remains to be seen, but one thing is certain: investors should be paying close attention to the Fed’s next moves.

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