US Federal Reserve

Peter Schiff recently appeared on CNBC’s “Future’s Now” letting millions of American voters know that if they’re frustrated with Trump, they should blame the Federal Reserve.  

“If the economy was in good shape, not only would he have not been elected, he wouldn’t have been the Republican nominee.”

Peter explained why Fed Chairwoman Janet Yellen is reluctant to raise interest rates because of the fallout from removing cheap borrowing from investors and consumers.

Authored by Murray Rothbard via The Mises Institute,

Our country is beset by a large number of economic myths that distort public thinking on important problems and lead us to accept unsound and dangerous government policies. Here are ten of the most dangerous of these myths and an analysis of what is wrong with them.

Myth #1

Deficits are the cause of inflation; deficits have nothing to do with inflation.

March rate hike odds dropped very marginally from before The Fed minutes (from 38% to 34%)...

But there is a great reaction in capital markets with stocks disappointed by The Fed's warnings and bonds and bullion bid...

Fed fears of dollar strength knocked the USD index lower... (despite a more hawkish tone)

And the yield curve flattened...

As it seems the market is not buying what The Fed is selling - except perhaps a loss of faith is fiscal policy.

March rate hike odds are unchanged (below 40%) and the yield curve has flattened since The Fed's February statement (despite heavy jawboning and higher inflation data) and so the Minutes were expected to help ease the markets to not be surprised. And they were...MANY FED OFFICIALS SAW HIKE `FAIRLY SOON' IF ECONOMY ON TRACK. However, the Minutes also showed 'balance' by not proclaiming concern over inflation - *MANY FED VOTERS SAW ONLY MODEST RISK OF SIGNIFICANT INFLATION and FED OFFICIALS SAW DOWNSIDE RISKS FROM FURTHER DOLLAR STRENGTH.