Hotter Inflation Chills Stock Market- Ep 874
The Peter Schiff Show Podcast
00:00
The Perverse Effect of Lower Interest Rates on Consumer Prices
Inflation may start out in asset prices, it always ends up in consumer prices because the reason that people own assets is so they can buy consumer goods. So paradoxically, by creating inflation and artificially suppressing interest rates, it actually helped keep the CPI low. The Fed has been forced to raise interest rates supposedly to fight the inflation that it created. That is having an adverse effect on the CPI as lowering rates to zero reduced the CPI raising interest rates now is going to put upward pressure on the CPI.
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