Peter Schiff: The Federal Reserve Has Handed the US Government a Blank Check

Like many other central banks, the Fed’s primary mission has become to finance the government. From Peter Schiff at schiffgold.com:

On Wednesday, Federal Reserve Chairman Jerome Powell called for a “society-wide” commitment to reaching full employment, calling for “contributions from across government and the private sector.” He said getting people back to work would require “continued support from both near-term policy and longer-run investments.” He also dismissed concerns about debt saying the focus needs to be on the economy’s immediate needs. As Peter Schiff put it in his podcast, Powell handed the US Treasury a blank check.

Peter said Powell’s comments were among some of the most dovish he’s ever heard.

I know I’ve said that before, except every time Powell speaks, he exceeds his prior level of dovishness. So, he’s getting more and more dovish as time goes by.”

The markets didn’t show much response to Powell’s comments. Peter said that leads him to believe that a lot of people still don’t understand the significance of what Powell is saying.

Powell was most revealing during the Q&A. He took a number of questions about inflation. As Peter noted, there are signs of exploding prices everywhere. But Powell said he’s not worried and doesn’t see signs of significant inflation.

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