The Peter Schiff Show Podcast
About This Show
Peter Schiff is an economist, financial broker/dealer, author, frequent guest on national news, and host of the Peter Schiff Show. He follows up his daily two-hour show with a weekly, two-hour podcast focusing on weekly economic data analysis and unbiased coverage of financial news, both in the U.S. and global markets. As entertaining as he is informative, Peter packs decades of brilliant insight into every news item. Join the thousands of fans who have benefited from Peter’s commitment to getting the real story out every week. qqawrh5c.
Most Recent Episode
Fed Admits It Needs Evidence Q1 Weakness Was Transitory – Ep. 251
< 1 day ago
Summary: The Fed is now indicating it needs evidence that the Q1 weak economic data is transitory and not a trend. This is interesting for 2 reasons. The Fed's narrative has always been to tout economic growth even in the face of flimsy or no supporting data. Now the Fed is actually admitting there is weakness. The other interesting thing is that, although the Fed continues to claim it is "data dependent", it has been ignoring the economic data ever since the first rate hike. The market puts chances of a June rate hike at almost 100%. Maybe that is because it believes the Fed will raise rates regardless of proof.
* On Wednesday we got the release of the Federal Open Market Committee's minutes
* As usual, the FOMC is indicating that as long as the economy continues to evolve according to their forecast, that it would be appropriate to remove additional accommodations soon
* And, I guess the markets are assuming soon is in about 3 weeks when the Fed meets in June everybody anticipates that the Fed will hike rates again
* Actually raising interest rates all the way back up to 1% - that would be the new floor on rates
* That was the lowest that rates got during the Greenspan era that gave us the housing bubble and ensuing financial crisis
* It's taken a long time even to get up to that insanely low level of interest rates
* But everybody still assumes - I think the probability is near 100% - that the Fed is going to raise rates in June
* But what I thought was interesting about those minutes, and nobody's talking about this
* In the minutes, the Federal Reserve said that they are also looking for proof that the weak economic data from the first quarter was transitory
* They're looking for proof in order to continue to raise rates
* I'm thinking, if the Fed says they need proof that Q1 data was transitory, are they actually going to get that proof by the June meeting?
* If they don't have the proof yet, are they going to have it by June?
* Almost all the economic data that has come out recently, including this week, has been pretty bad
* In fact, the data that we're getting confirms to me that rather than being transitory
* The weakness in the first quarter is likely to continue
* If it's transitory at all it is because we're transitioning into a recession
* So if the Fed is looking for pr
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