“This is a bubble not just in the stock market, but the entire economy,” Schiff said during an interview with FOX Business’ Liz Claman.
The economic forecaster is predicting a recession accompanied by rising consumer prices that will be “far more painful” than the Great Recession, which officially lasted from December 2007 to June 2009.
“I think as Americans lose their jobs, they are going to see the cost of living going up rather dramatically, and so this is going to make it particularly painful,” Schiff said.
“This is a bubble not just in the stock market, but the entire economy,”
President Trump has placed the blame on the U.S. central bank for the worst stock market selloff since February, saying the Federal Reserve “has gone crazy.”
“I think the Fed is making a mistake. They’re so tight. I think the Fed has gone crazy,” Trump told reporters on his way to a rally in Pennsylvania on Wednesday.
Schiff said the president is wrong about the Fed going “crazy” because the central bank has been acting irrationally for a long time.
“What is crazy is for the Fed to believe that they can raise interest rates without pricking their own bubble,” he said.
“All bear markets start off as corrections. I think this one is probably a bear market. It’s long overdue,” Schiff said on FOX Business’ “Countdown to the Closing Bell.”
Schiff said investors are on the edge of a precipice that foresees a bear market far worse than the stock market crash of 2008.
“This is a bigger bubble than the one that blew up in 2008, and the crisis that is going to ensue is going to be far larger,” he said.