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Peter Schiff: June Rate Hike Immaterial; Rate Cuts and Quantitative Easing Up Next (Video)

• Peter Schiff

Will the Federal Reserve raise rates in June?

Peter Schiff says it's immaterial.

Peter appeared on CNBC's Fast Money and created a firestorm when he said he sees this as a repeat of what happened at the end of last year and suggested everybody knows the Fed is at the end of its tightening cycle.

"You know, the Fed launches a trial balloon, they raise the possibility of a rate hike, and they wait to see how the markets react. And the markets are basically acting positively, just like they did in December last year. Everybody was convinced there was a rate hike, but the markets were rising anyway. And I think it was the increase in the markets that gave the Fed the false confidence to actually raise rates. But as soon as they did, the markets sold off. We had the worst start to a year in history, and I think the same thing will happen if they raise rates in June. I think the market is going to sell off. I think gold is going to rally again. And I think the dollar is going to sell off. Because these rate hikes are too little too late."

In fact, Peter thinks by the end of the year, the Fed will have to start taking it all back, and eventually launch another round of quantitative easing.

The CNBC hosts tried to push Peter into a corner, touting how great the stock market has done over the last several years. Peter fired back, arguing that what we've seen is really just a giant asset bubble, not unlike the housing bubble the precipitated the most recent crash.


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