Schiff on Kitco: Rate Cuts Won’t Save the Dollar

Peter recently joined Kitco’s Jeremy Szafron to discuss why Fed rate cuts are unlikely to deliver hoped-for relief and may instead accelerate the dollar’s decline. He ties the problem to ballooning deficits, a fragile banking system, and the history of the Federal Reserve, and he closes by pointing out why silver remains undervalued relative to gold.

He warns that rate cuts intended to prop up the economy will have the opposite effect on long-term yields and the dollar:

And so now they’re going to cut rates because of the weakness in the labor market and the economy, but the rate cuts are not going to deliver the expected relief. I believe that they will backfire in that they will cause long-term rates to rise, which is really what they want to reduce. And that will ultimately usher in a return to quantitative easing. And that’s the nail in the dollar’s coffin. And I think that’s why you’re seeing, you know, the dollar is weakening today.