Renowned financial analyst Peter Schiff has cast a critical eye on the latest U.S. inflation figures, suggesting that the Federal Reserve's battle against rising prices is faltering.
The recently released data for July revealed a year-on-year inflation rate of 3.2%, accompanied by a monthly increase of 0.2%. Despite the growth in these indicators, which nevertheless fell short of market expectations set at 3.3%, Schiff contends that the central bank's efforts are in vain.
Schiff, a well-known skeptic of the crypto market and a vocal critic of Bitcoin, asserts that the situation is far from under control. Dismissing the narrative propagated by the financial media, he claims that the reported numbers do not signify a victory for the Fed in its war against inflation. According to Schiff, the core inflation rate is nearing its lowest point, while the headline figure is poised to surge, driven by soaring oil prices. In his view, the Fed's inability to curb inflationary pressures is already apparent.
Don't believe the financial media's spin that July's 3.2% YoY #CPI rise, with YoY core at 4.7%, means the #Fed is winning its war against #inflation. Core is bottoming, and the headline number is about to rise sharply led higher by surging #oil prices. The Fed has already lost.— Peter Schiff (@PeterSchiff) August 10, 2023
As the U.S. stock market opens today, major indices have witnessed a positive trajectory in the aftermath of the inflation data release. Prices have risen in line with expectations, though not dramatically. This reassuring trend has breathed new life into the market, sparking renewed "risk appetite" among buyers.
In stark contrast, Bitcoin, a digital asset consistently maligned by Schiff, has displayed a contrary performance, trading down by 0.4% from its opening price.