Tags: Schiff | Fed | quantitative | easing

Peter Schiff: Get Ready for Fed's QE4

By    |   Thursday, 09 October 2014 08:56 PM

The Federal Reserve has indicated it will end its third round of quantitative easing (QE3) at its meeting later this month, and most economists figure that will be it for the Fed's new bond purchases. 

They expect the central bank's next move to be an interest-rate hike—around the middle of next year. But not Peter Schiff.

"I don’t think they ever had a plan to hike rates," the CEO of Euro Pacific Capital told Yahoo Finance. "I think their plan is to launch QE4, but they can’t come out and admit that, so they’ve been pretending that they’re going to raise rates."

And why will the Fed refrain from a rate increase that it has promised is coming at some point? "I’ve been saying for months that they’re going to a come up with an excuse," Schiff said. "The latest excuse is ‘well, the dollar’s too strong.’"

The greenback climbed to a six-year high against the yen and a two-year high against the euro last week.

Jack Bogle, founder of Vanguard Group, has a slightly more enthusiastic view of the Fed's easing program than Schiff. 

"We are very close to the best-performing developed economy in the world. Give the Fed credit for that," Bogle told CNBC.

"The hidden secret is that what is great for borrowers is terrible for lenders. There is no way around that eternal tension. This is a terrible time for savers." They should consider short-term bonds, he said.

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The Federal Reserve has indicated it will end its third round of quantitative easing (QE3) at its meeting later this month, but Peter Schiff, CEO of Euro Pacific Capital, isn't buying it.
Schiff, Fed, quantitative, easing
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2014-56-09
Thursday, 09 October 2014 08:56 PM
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