Economist and gold advocate Peter Schiff has warned, Fed’s rate cut will lead to Economic Disaster. He wrote on X platform, Elaborating:

„Not only will this round of rate cuts not stop a cooling economy from entering a recession, but it will also turn up the heat of inflation, making the recession that much worse. “

Federal reserve bank decision is based on hope and this rate cut will only make things worse for the economy and its people. The worst trouble is that long-term bond yield rose.

This warning from Peter Schiff was absolutely justified regarding the fact that Fed have made a policy mistake crushing the dollar and reignite inflation who will angared more debt and send consumer prices soaring.

Schiff commented on Wednesday:

„ Analyst claiming the stock market isn’t pricing in a recession because its trading near records highs still don’t get it. Investors know that a recession means interest rate cuts and return to QE, both are believed to be bullish for stock. That’s what markets are pricing in. “

So far his warning was good advice pointing the investors to invest in one asset that will go ‘through the roof’ and that’s gold.

The Feds rate cut has an impact to ECB’s pace of rate cuts who’s slower than the Fed’s, the euro could face further downward pressure against the US dollar. We may see another rate cut from ECB or will they play it steady as Australian reserve bank who at the same time won’t cut its interest rates. They sayd “No chance to cut it next week, the cut of interest rates will continue slowly to go down.” The current unemployment is at 4.2% and inflation on 3.5 %. Australia reserve bank is in no hurry to cut its interest rates.

The US recession will be deeper and inflation will raise concern about future economic stability.