Schiff Warns of Economic Downturn Amid Soaring Oil Prices
Renowned economist and commentator Peter Schiff has predicted an economic downturn, attributing it to rising oil prices. He believes that regardless of the outcome of the Iran war, energy prices will continue to soar.
Schiff pointed out that the elevated fuel prices are not solely due to the ongoing conflict but also to the Federal Reserve's loose monetary policy. He stated that a quarter-point rate hike last week is 'too little too late' to combat inflation and that upward pressure on all prices will persist.
The chief economist of Euro Pacific Asset Management noted that diesel prices, which recently hit an average high of $6.5276 as of Tuesday, will have a particularly detrimental impact due to its widespread use in agriculture, transportation, and other sectors.
Schiff also warned that the U.S. Strategic Petroleum Reserve (SPR) will eventually be depleted, leading to even higher prices when replenishment efforts begin.