Peter Schiff Slams Federal Reserve, Jerome Powell For Double Standards On Inflation

Economist Peter Schiff slammed Federal Reserve Chair Jerome Powell’s recent comments about the central bank’s inflation policy, pointing out a perceived inconsistency in the application.

What Happened: Schiff took to X, formerly Twitter, to express his views on the Fed’s inflation policy following a recent announcement by Powell. In his tweet dated Wednesday, Schiff contended that despite years of inflation exceeding 2%, the Fed would not accept any years where it falls beneath that figure.

The economist’s critique follows Powell’s recent statement that the Federal Reserve would not consider reducing the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.

See Also: Trump’s Tariff Proposal Under Fire By Nikki Haley: ‘He’s Going To Raise Every Household’s Expenses By $2,600 A Year’

Why It Matters: Schiff’s comments should be viewed in the context of the Fed’s current stance on inflation and interest rates. The central bank has kept rates unchanged, as reported in a recent Benzinga article. The U.S. central bank kept rates steady between 5.25% and 5.5% on Wednesday at its first meeting of the year.

Moreover, Schiff has previously voiced his skepticism about the Fed’s commitment to its 2% inflation target. In September 2023, he suggested that the Fed may have “secretly given up” on this target, hinting at a possible shift in monetary policy.

The economist also predicted a high inflation-led recession in 2024, contradicting the prevalent optimism about the Fed’s capability to prevent a recession without triggering inflation, as noted in a Benzinga report.

Photo Courtesy: Wikimedia Commons

Read Next: Why Nasdaq Futures Are Diving Today