Peter Schiff Calls Gold Sell-Off a Huge Mistake—Rising Inflation ‘Very Bullish’ for Gold

Economist and gold advocate Peter Schiff has issued a stark warning about inflation, arguing that the Federal Reserve’s response is inadequate and that the economy faces serious risks. He criticized traders for selling gold in reaction to inflation data.

“The knee-jerk reaction to sell gold on hotter than expected inflation news was wrong,” he stated on social media platform X Wednesday, elaborating:

Rising inflation is very bullish for gold. It doesn’t matter if rate cuts are delayed. It’s the failure of the Fed to hike rates that’s important. With inflation rising, real rates are falling.

Raising concerns about the Federal Reserve’s approach, he highlighted that inflation is accelerating at a concerning pace. “Even if you annualize the last three months of CPI data, the inflation rate is 5%. Inflation is running away and the Fed is asleep at the switch. Actually, it’s afraid to throw the switch for fear of setting off another financial crisis.”

The gold advocate predicted in another X post:

Inflation will be much higher in 2025 than it was in 2024, but it won’t be because of the tariffs.

“However, the Democrats will blame the higher inflation on the tariffs, and the public is likely to believe them. Lower inflation is one promise that Trump can’t keep,” the economist opined. His remarks suggest that inflation concerns will remain a dominant issue in economic and political discussions.

Schiff warned that inflation will have broader consequences beyond rising prices, particularly affecting interest rates and economic stability. “Inflation and long-term interest rates, including mortgage rates, will be higher in 2025 than they were in 2024. The economic drag this will create will likely result in an official recession being recognized before year-end. Stagflation, the Fed’s worst fear, will be realized.” He has repeatedly argued that the Federal Reserve’s policies are failing to address the core issues driving inflation and that economic conditions are deteriorating faster than policymakers acknowledge.

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