Peter Schiff: Latest FOMC minutes actually say nothing about rates increase - Video

According to Bloomberg, market players believe there is a 74% chance that the Fed will hike rates at its next week's meeting, as they refer to hawkish comments by the policy-makers, as well as the most recent FOMC minutes. The 74%, however, does not include Peter Schiff, the head of Euro Pacific Capital.

In an interview below he is sharing his view on how the Fed might proceed with raising borrowing costs and the talk largely repeats a series of earlier attacks against the central bank, which he has criticized for mismanaging monetary policy.

Schiff suggests that in the minutes from the FOMC October meeting, the committee only said that a majority of the members believe that the conditions may be right for hiking in December, but they are not sure, as it will depend on the data.

He supposes the 0.25% increase might come, but is still inclined to believe it won't happen, as there can be a market selloff, or jobs data may disappoint, or October jobs data may be revised down... But anyhow, if the officials were so confident the economy is robust, why would they reassure the hikes would be tiny and gradual?

As for the impact on the economy, Schiff believes that a 4% increase won't come soon. Moreover, long before the Fed gets to just 1%, the economy will be back in official recession or close enough to it, that the central bank will again have to stimulate...