Fed's Inflation Battle Already Lost, Warns Schiff

Peter Schiff argues that the US Federal Reserve has already lost the battle against inflation. According to him, the bond market effectively broke in 2020 and everything since then has been a slow unwind. He connects rising Treasury yields, the Fed's expected rate decision, and the dollar's loss of purchasing power to a rush into gold.

Schiff warns that a rate-driven stock selloff would be deeply bearish for Bitcoin and the broader crypto market. He notes that during this time, gold ran up to 5,500 while Bitcoin was about 23% off its highs. Additionally, Schiff mentions that political capital in Washington has turned against crypto.

The bond market's breakdown in 2020 is a crucial point for Schiff, as he believes it sets the stage for current events. He emphasizes that higher rates would lead to a recession, which nobody seems willing to accept. The dollar crisis is another concern for Schiff, who believes that the Fed's actions have already set the stage for its collapse.