Top economists warns that America is moving towards economic disaster

Peter Shif, the chief economist of the Euro Pacific Asset Management, criticized the Federal Reserve and played an alarm about the economy during an presence on Wednesday “The Claman Countdown,

Shif’s comments on the show did not come for a long time after the Federal Open Markets Committee (FOMC) wrapped in its latest meeting in the afternoon, which was selected to keep the central bank’s benchmark interest rate at its current level.

The Federal Reserve Chen Xerome Powell later commented to the media about the decision.

Shif told the host Liz Claimn that “the biggest tech is that Powell originally admitted that he did not know what was going to happen.”

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“They really don’t know what is going to happen with consumer prices. They don’t know what is going to happen,” Shif argued. “I don’t think their forecasts are educated estimates that the desire is very high as thinking.”

After the latest decision of the Fed, the benchmark Federal Funds rate will be on the current range of 4.25% to 4.5%.

The FOMC policy makers also released a summary of economic estimates, known as the so -called “dot plot”, showing that members estimated two interest rate cuts in 2025, followed by each in 2026 and 2027.

They also project that PCE inflation will increase by 2.4% in 2026 and 2.1% next year before 3%. Real GDP (GDP) is seen to be slowed up to 1.4% in 2025, before the growth is up to 1.6% next year and up to 1.8% in 2027. Unemployment is seen growing up to 4.5% before drying up to 4.4% in 2025 and 2026 in 2027.

Shif said that he felt that inflation would be “much more” than expectations American economy “Will be very weak.”

he admitted Fed “Their inflation brought up a slightly up” and “forecasts of their growth down” but said that such changes were “not quite large.”

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According to Shif, the “big problem” for inflation has been for all inflation chickens that have been issuing for more than a decade, coming home to roast the house instead of the recent spate of tariffs on imports from abroad of Trump administration.

Shif told Claim, “We have a lot of dollar slosing worldwide, thanks to artificially low interest rates and quantitative ease for years and years, and more out of those dollars are coming home because foreigners get out of US financial property,” Shif told Claiman.

“You are looking at one of the American shares global migration, among the American bonds, and all this cash is coming back home, bidding in prices.”

Shif predicted that the US “with a recession and too high inflation occurring at the same time,” complicates defense ability to try something about the problem. ,

Low interest rates would not help the US economy, they argued, labeled them as “causes”.

“The solution includes a lot of interest rate,” he said. “Now, I think it is going to be very painful, which we have created, which we have created, has been built on the foundation of cheap money.”

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He said, “This means stock prices decrease, real estate prices decrease, companies fail,” he said. “There is going to be bankrupt. There is going to be a lapse. There is a long recession, perhaps there is a very bad financial crisis compared to 2008, but all this is to happen because its option is worse.”

Is on the way to America “Fractal inflation“This” can become hyperflation, “Shif predicted.

The latest meeting of FOMC was the fourth time which was held together this year.

The FOMC chose not to change the rate in the last three meetings in January, March and May.

In the end of May, the Individual Consumption Expenditure Index showed an increase in inflation for April 0.1% month-month and 2.1% year-over year.

Eric Rewell contributed to this report.