Gold Bull Peter Schiff Labels ‘Bidenomics’ As ‘Putting Lipstick on A Pig,’ Says Fed’s Powell Has ‘Surrendered’ In War On Inflation

Economist and founder of Schiff Gold, Peter Schiff, shared his views on the economic outlook and interest rates post the Federal Reserve’s dovish pivot in December.

What Happened: In a recent video on his YouTube channel, Schiff expressed concern that the jobs created during President Joe Biden‘s tenure mainly went to those already employed. He emphasized the adverse impact of inflation, with individuals taking on additional jobs, cutting leisure, and resorting to borrowing, resulting in record-high credit card debt and surging auto delinquencies.

“The economy is a disaster,” Schiff declared, asserting that Fed Chair Jerome Powell had essentially “surrendered in the war on inflation” due to the weak economy. 

Powell’s suggestion to start cutting rates before inflation falls to the 2% target reflects an attempt to prop up growth by creating more inflation, Schiff said.

“The reason he said he wanted to start cutting in advance is he didn’t want to overshoot, meaning he didn’t want inflation to go below 2%,” Schiff explained, suggesting that sub-2% inflation could offer some relief to Americans.

See Also: Best Inflation Stocks

Economy’s Strength A Myth? Schiff questioned the perceived strength of the economy, arguing that rising essential costs have eroded consumer savings. He accused the government of perpetuating a false narrative of economic strength, pointing to a media establishment complicit in supporting such claims.

“Everything Powell is doing, the goal is to reelect Biden,” the economist said. “Hopefully, the public won’t allow him to achieve the goal,” he said. Citing poll results, he said it appears that Biden will likely be a one-termer.

“Talk about..putting lipstick on a pig, you know that’s what they’ve done here with this whole idea of ‘Bidenomics’ but the public isn’t buying what they’re selling,” Schiff said.

The economist recommended buying gold now that the Fed has caved in, predicting that inflation would worsen.

Fact Check: In November, annual headline consumer price inflation stood at 3.1%, exceeding the 2% Fed target but slower than the 9%+ level seen in June 2022. The year-over-year core rate for November was at 4%, down from 5.9% last summer. Inflationary trend well above the Fed’s target has led some…