Fed Chairman Jerome Powell says it’s “very premature” to suspend interest rate hikes – Peter Schiff fears it could cause an economic meltdown

Federal Reserve Chairman Jerome Powell says it is “very premature“to think about pausing rate hikes. We still have a long way to go“, he stressed. However, economist Peter Schiff warned that “planned rate hikes and QT will only succeed in collapsing the economy, not lowering inflation.

Fed Chairman Jerome Powell says it’s “very premature” to talk about a pause in raising interest rates.

Fed Chairman Jerome Powell clarified at a press conference on the central bank’s economic outlook Wednesday that the Fed is not considering pausing its rate hikes. The conference followed the Federal Open Market Committee (FOMC) meeting at which the U.S. central bank decided to raise interest rates by an additional 0.75 percentage points – for the fourth consecutive time this year.

Jerome Powell stated, “The FOMC raised our policy interest rate by 75 basis points and we continue to expect that continued increases will be appropriate“, adding:

It is very premature, in my opinion, to think or talk about a pause in our rate increases. We still have a ways to go.

The Fed president also noted that “the ultimate level of interest rates will be higher than expected” and that the chances of a soft landing have diminished.

Commenting on Powell’s indication that a Fed pivot won’t happen anytime soon, economist Peter Schiff tweeted, “Powell just threw cold water on the idea of a pause in interest rate hikes, causing an immediate and sharp sell-off in the financial markets. This sell-off will likely continue until Powell ‘clarifies’ his remarks to keep the stock and bond markets from crashing to new lows.

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In a subsequent tweet, he wrote:

Powell said he prefers excessive tightening to beat inflation because it will be easy for the Fed to use its tools to stimulate the economy if it gets too weak. Powell doesn’t get it. Planned rate hikes and QT will only succeed in crushing the economy, not bringing down inflation.

Peter Schiff also recently warned that the U.S. dollar will collapse. He added that the Fed’s action could lead to a massive financial crisis and a severe recession.

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A growing number of economists have warned of a severe recession in the United States as the Federal Reserve continues to raise interest rates to fight inflation. A recent survey shows that 98% of business leaders are bracing for a U.S. recession. Prominent investor Jim Rogers expects the recession to be the worst in history. Rich Dad Poor Dad author Robert Kiyosaki has said that continued rate hikes by the Federal Reserve will lead to a collapse of the U.S. economy.

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