Wall Street bigwigs warn: More disastrous rate cuts are on the way!

As more and more evidence suggests that a US economic recession is imminent, economist Peter Schiff reminds us that the policies of the Federal Reserve over the past few decades have made such a recession inevitable. The Wall Street veteran investor stated: " The right thing to do is to further raise interest rates and let nature take its course. Of course, the stock market will crash, the real estate market will also crash, and we will experience a hard landing. This will be a recession. Unfortunately, this is what we need. Not because it's fun, but because it's necessary. Now, if you don't want to go through this necessary crash, then the Federal Reserve should not make deals with the devil, because the devil will come to collect his due sooner or later." Even though cutting interest rates is the wrong choice, the market is confident about a rate cut in September or even earlier: "I've said, if there's no emergency rate cut, there will definitely be a rate cut in September. I just think they may not wait until September. They may need to act faster. They may still do it because we have a long way to go until the September meeting. However, as the bond market starts pricing in this expectation and rates fall, it helps the market because the market sees this and thinks 'well, the Fed is definitely going to cut rates.' The market now realizes that whatever happens, the Fed will take action in September. I think this helps boost market confidence." The recent performance of Bitcoin illustrates why it is not suitable to be a reserve asset: " When everything is falling, Bitcoin falls the most. And they want governments to hold Bitcoin reserves? You can't have the most unstable asset as a reserve asset. A reserve asset is something you should rely on. When everything else is being sold off, you can use that reserve asset. But how can you use a reserve asset that falls more than the asset you're trying to hedge against?" In terms of election news, Harris chose Waltz from Minnesota as her running mate. Peter believes that Governor Shapiro of Pennsylvania would be a better choice, but the media is keen on shielding Harris from any criticism. Peter said: "The media has been repackaging and reshaping her. They have as many lies about Harris as they do about Biden. The same people who said, 'Biden is as sharp as a knife,' right? Once this lie was exposed, they immediately abandoned him. Now they have a new lie, about how great Harris is. As long as she keeps quiet and no one really hears what she says, they can continue to market her to the American public as if she's the best. Obviously, this approach is working."