Peter Schiff, chief economist at Euro Pacific Asset Management, stated on X today, October 17, that recent inflation indicators confirm the Federal Reserve's failure to control rising prices. Schiff observed that despite higher-than-expected data, traders sold gold, believing the Fed would intensify its efforts. He commented, "CPI, PPI and import prices all came in hotter than expected this week. Traders sold gold anyway. They think it means the Fed will fight harder. It means the Fed already lost. Gold at $4,145 is a gift."
Schiff's comments follow a week of economic data releases. Recent Gokhshtein Media coverage, including Lyn Alden Says Bond Market Yields High Due to Persistent Inflation and Mohamed El-Erian Notes Strong US Data Reinforces Inflation Message, highlights ongoing concerns about inflation. Peter Schiff also previously called the Fed's inflation fight insincere, citing its balance sheet and M2 growth. The Crypto Fear & Greed Index currently sits at 55, indicating 'Greed' in the broader market sentiment.
Schiff's view implies that current market reactions to inflation data are misinterpreting the Federal Reserve's actual position and effectiveness. He suggests that the Fed's past actions have already failed to curb inflation, making gold an undervalued asset. Investors might watch for further inflation data releases and the Federal Reserve's next policy statements to gauge if Schiff's assessment gains wider traction or if market sentiment shifts.
