Schiff Doubts Fed on Inflation as McDonald's CEO Warns of Years of Elevated Prices

Investor Peter Schiff questioned Federal Reserve Chair Kevin Warsh's inflation outlook after McDonald's Corp. CEO Chris Kempczinski warned that elevated inflation and squeezed household budgets are hurting customer traffic across the restaurant industry.

Kempczinski said at McDonald's Investor Day that 'industry traffic growth in our wholly owned markets will be flat while inflation remains elevated,' adding that 'the winners will be the companies that create more demand and deliver it more efficiently.'

Schiff contrasted Kempczinski's view with Warsh's position that inflation expectations remain firmly anchored at 2% and that the Fed will ultimately hit that target.

Warsh used his August Jackson Hole speech to argue that inflation, not employment, is now the Fed's primary focus, calling the 2% goal 'a firm, fixed target.'