Schiff on Soar Financially: Rate Cuts Will Fuel Inflation

Last week, Peter joined the Soar Financially channel to lay out a clear warning: the Fed’s hoped-for rate cuts won’t rescue growth, they’ll stoke inflation and leave the economy worse off. He connects loose monetary policy to fiscal excess, presidential meddling, and a renewed flight into gold — a classic signal that sound money advocates have long warned about.

He starts by questioning the logic behind cutting rates when the economy is supposedly strong, and warns that easing will have the opposite of the intended effect:

If we really have such a great economy, why is it so important that we get these massive rate cuts? But I don’t think the rate cuts are going to strengthen the economy. I think they’ll strengthen inflation, which will weaken the economy. And I think that’s the box that we’re now in. Because I think anything the Fed does on an interest rate basis or quantitative easing, which I think is the next policy, I think it’s actually going to undermine the economy even more.