Peter Schiff, chief economist at Euro Pacific Asset Management, asserted on X today, November 10, 2026, that the Federal Reserve's current approach to monetary policy is inadequate to control inflation. Schiff stated, "The CPI will likely rise 5% in 2026 and by more than 7% in 2027, higher than any calendar year under Biden. The Fed's planned rate hikes are too little, too late to prevent this. The federal funds rate must be raised by at least 200 basis points now to possibly stop this train."
Schiff's warning follows recent inflation data, including a Consumer Price Index (CPI) report showing a 0.4% monthly increase in October, with core CPI up 0.3%. Our recent coverage, including David Gokhshtein Says Inflation Data Puts Half-Point Hike on Table, indicates that a hot CPI report could push the Federal Reserve towards more aggressive action, with Fed Governor Waller reportedly open to a 50-basis-point hike if inflation accelerates. Traders have already boosted bets on a half-point Fed rate hike next month.
Schiff's view implies that even a 50-basis-point hike would be insufficient, advocating for a much more drastic intervention of 200 basis points immediately. This suggests he believes the Fed is significantly behind the curve and that inflation will continue to accelerate into 2027 unless more aggressive measures are taken promptly. His comments suggest a deep concern for the long-term inflationary trajectory.
