Schiff Slams Warsh: 'Fed Is Creating Inflation'

Veteran economist Peter Schiff is criticizing Federal Reserve Chair Kevin Warsh's inflation-fighting rhetoric, saying it doesn't match the central bank's actions. The Fed's balance sheet jumped by more than $11 billion last week to $6.76 trillion, up from $116.3 billion in a year.

According to Schiff, if the Fed was serious about hitting its 2% inflation target, it would be shrinking its balance sheet rather than growing it. He says Warsh talks about fighting inflation while the Fed is creating it.

The Consumer Price Index report on Wednesday showed inflation rising 3.4% year-over-year in July, down from June's 3.5% increase, but Schiff calls this a 'misleading' print as it still reflects May's oil price collapse rather than July's rebound.