Peter Schiff, chief economist and global strategist at Euro Pacific Capital, said he doesn't believe in the hype on the Federal Reserve’s hawkish pause on rates.
"If the #Fed really was hawkish it wouldn’t have skipped this rate hike. There’s a good chance that the Fed’s next move on rates will be a cut, not because #inflation is lower, but because the labor market finally cracks," Schiff said in his tweet.
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The economist's comments follow the central bank announcing a pause in its rate hike campaign after ten successive increases to tackle decades-high inflation. What did appear as a point of concern was the Fed's indication it may hike rates by another 50 basis points this year.
Powell asserted in his speech that not a single person on the committee wrote down a rate cut this year. "Nor do I think it is at all likely to be appropriate if you think about it. Inflation has not really moved down. It has not so far reacted much to our existing rate hikes. And so we’re going to have to keep at it," the Fed Chair said.
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