Peter's Blog

Peter Schiff: Inflation Bloodbath on the Way

This time Peter tackles Jerome Powell’s speech from Wednesday, in which he announced that the Fed is holding the federal funds rate between 5.25 and 5.5%. He also briefly discusses Bitcoin’s pullback and the media’s lies about Donald Trump. 

Federal Reserve Launches Program to Bail Out Banks

In the wake of two bank failures, the Federal Reserve and the US Treasury announced a bank bailout program. Last week, Silicon Valley Bank was shuttered by federal authorities after the bank suffered significant losses selling bonds in order to raise capital. When that news hit, depositors rushed to pull funds from the bank, making […]

Slow Pace of Balance Sheet Reduction Calls Into Question Fed’s Commitment to Inflation Fight

Most people have focused on Federal Reserve interest rate cuts as it battles price inflation. But there is another element in the inflation fight most people ignore – balance sheet reduction. It isn’t going well.

Treasury Market Liquidity and Volatility Problems Could Derail Fed Balance Sheet Reduction

Interest rate hikes get most of the attention as the Federal Reserve fights inflation, but balance sheet reduction is arguably more important. And it’s not going well. Since the Fed stopped buying Treasuries and started letting bonds fall off its books as they mature, the bond market has experienced increasing volatility and liquidity problems. In […]

Ron Paul: Wreck the Economy Win a Nobel Prize

Ben Bernanke was one of the architects of the inflation you’re suffering from today. He won a Nobel Prize for his efforts. Bernanke rolled out quantitative easing to rescue the economy in the wake of the 2008 financial crisis. At the time, he swore it was a temporary emergency measure and that the Fed would […]

Fed Balance Sheet Creeping Upward Again

The Federal Reserve has talked a lot about fighting inflation. But what has it actually done? In practice, not a lot. It has nudged interest rates up 75 basis points. And while the Fed has ended the massive quantitative easing program that it ran during the pandemic, it pushed balance sheet reduction back from May […]

Why Won’t the Fed Be Able to Shrink Its Balance Sheet?

Earlier this week, Federal Reserve governor and vice-chair nominee Lael Brainard indicated the central bank will shrink its balance sheet at a “considerably” more rapid pace than it did during the previous cycle. I, Peter Schiff and a few others outside the mainstream have said the Fed won’t be able to do this. Why not?

Quantitative Easing Has Seemingly Ended (for now)

It appears quantitative easing has pretty much come to an end. At least for now. Although the Fed was still expanding the balance sheet through mid-month, it only added a net $9B to the balance sheet during March. This was accomplished with moderate purchases of short- and long-term debt, while 5–10-year notes had a $20B […]

Peter Schiff: How Long Before the Fed Has to Turn Japanese?

Is the US about to go the way of Japan? The Japanese yen tanked after the Bank of Japan vowed to buy an unlimited number of Japanese government bonds in order to hold the 10-year yield under its 0.25% target.

While Talking About Fighting Inflation, the Fed Continued to Expand Its Balance Sheet

Earlier this month, the Federal Reserve launched its first salvo against inflation, raising interest rates by a quarter-percent. It was a pretty weak shot given 7.9% CPI, but Jerome Powell and other Fed presidents ratcheted up the tough rhetoric last week. Powell raised the possibility of 50 basis-point rate hikes at future meetings and San […]