Peter Schiff Says Fed Never Intended to Raise Rates, “We are stuck in a Gigantic Bubble”

Peter Schiff, CEO of Euro Pacific Capital, maintained that “the Fed just doesn’t want to acknowledge that its monetary medicine didn’t work. The patient is sicker than ever. So, it wants to maintain the pretense that it is going to raise rates, but it doesn’t want to actually do it because everybody will realize how weak the economy is.” He explained: “it doesn’t serve the Fed’s purpose to actually raise rates. What serves their purpose is to pretend they can raise rates.” According to Schiff, the Fed is stuck because the economy is in a bubble and “the air is coming out.” He said, “the market is going to want another dose of quantitative easing, and that is exactly what Janet Yellen is going to deliver, to the detriment of the real economy.” To those who disagree, Schiff responds: “It’s not the first time I’ve been against consensus and it won’t be the last. And I’m usually right.”