The current economic decisions taken by the Fed and the government has made many controversies. People did not think the Fed will have to cut the rate of interest for more than two times. While giving an interview, CEO of Euro Pacific Capital Peter Schiff said that the Fed’s decision to expand balance sheet in the form of “unofficial” quantitative easing would increase inflation. Fed’s decision is as expected, but it will create some problems in the way of recession, Peter said in an interview. He mentioned the fact that if things like this happened, then it will increase prices of gold. Peter, who manages funds, knows which type of asset one should own to increase their net worth significantly.
He mentioned his desire to purchase gold since prices of it will rise because of an unexpected recession. There had been multiple reports earlier also that if the government doesn’t go in hands with Fed, then such political situation will bring catastrophic results for the overall country. Peter did not mention how much rise of prices in Gold and related commodities he is expecting in the future. However, he said that the price could see an upward of $1500-2000 very quickly. Recession is that time where people’s buying power gets deteriorated, and nothing good comes out of it. The Great Depression, which happened in 1929, lasted for more than ten years. Big industries like retail, manufacturing, a tech will undoubtedly suffer the most if the same thing happened again.
Peter said that he is expecting the next Recession to be more brutal than previous ones only if it happens. The market is already giving volatile respond to every decision of a government, whether its first phase of the trade deal or any other relevant government decisions. Schiff thinks the USA is heading towards a more catastrophic recession, and everyone should consider such an important thing.