Peter Schiff: Powell is a Dog Chasing His Own Tail

In Wednesday’s episode of The Peter Schiff Show, Peter responds to the Fed’s latest rate cut, laying out why the Fed’s attempts to normalize policy have failed and how that failure ripples across markets, housing, and wages. He walks listeners through the permanence of the Fed’s bloated balance sheet, what that means for mortgage-backed securities and rate expectations, why gold still matters as a sanity check, and how market concentration and inflation interact with workers’ hopes for higher pay.

He opens by returning to an argument he made years ago about the Fed’s inability to unwind its interventions, calling out past assurances that now look impossible to keep in 2025:

Back then I said there’s no way that the Fed is going to reverse this, that this is a monetary roach motel the Fed checked in, and it ain’t never checking out. Well here we are now in 2025 and the balance sheet is 6.7 trillion, and the Fed says we’re not making it any smaller. Which proves that Ben Bernanke lied or just was completely incompetent if he actually believed what he was saying. I at least was smart enough to know that what he was saying was impossible.

Peter then explains one technical but consequential detail about how the Fed is handling its holdings, and why that nuance matters for the housing market rather than being a small bookkeeping change: