Wall Street veteran investor and renowned economist Peter Schiff analyzed two events, including Trump's decisive victory and the Federal Reserve's announcement of another interest rate cut. Peter opposes the unlimited economic optimism of Trump supporters and criticizes Powell's stance on the Federal Reserve's independence as well as his shocking indifference to the potential for stagflation in the future.

Peter first emphasized the awkward trade-off between taxes and government spending. Trump promised new tax cuts, but these must be offset by cuts in spending; otherwise, national debt will balloon out of control.

Peter suggested that Trump may need to have a fireside chat with the American public, speaking candidly. 'He could say, when I ran for president, I promised many things. I promised many tax cuts, and if we can't significantly cut spending, we really need to raise tax rates. This is what we are going to try to do. I am going to ask Americans to pitch in and tighten their belts.'

Despite both Republicans and Democrats enjoying credit for national economic growth, the reality is that most of this 'growth' is an artificially induced prosperity maintained by the Federal Reserve's expansive mmf policies for decades.

Peter said, 'The problem is we do not have a strong economy; we have a bubble, we have a fragile economy. In fact, we have been blowing bubbles in this economy since the 1990s. Greenspan was the architect of this house of cards. He has been injecting air into the economy, and every president since Clinton has hidden behind his bubble, taking credit for false economic growth that is the result of the continually expanding bubble.'

As the stock market rises due to Trump's success, Peter believes that the best time to buy USA stocks is when the aforementioned bubble bursts. While it will be painful in the short term, at that point, stocks will be a bargain.

Peter stated that the best time to buy USA stocks is not when they are historically overvalued. 'I am waiting for Wall Street to show some 'blood.' I hope a crash happens…'

He added, "I know that when we do this, the economy is in a recession and everyone is pessimistic, but at that time I will remain optimistic, because I will know that this is the bitter pill we should have swallowed long ago."

Regarding the question of the Federal Reserve's interest rate cuts, Peter pointed out that if Harris rather than Trump is elected, the Federal Reserve may reduce the extent of rate cuts.

"You can assume that if we have a stronger economy, the Federal Reserve should reconsider the extent of rate cuts or even pause or raise rates. I thought the Federal Reserve would never do that. Trump would go into a rage—the Federal Reserve officials would cut rates. And that is exactly what they did."

One reason the dollar is so strong is that people expect the usa economy to be stronger, and the Federal Reserve may not cut rates as frequently as before.

Peter criticized Powell's political cowardice, as he used the independence of the Federal Reserve as an excuse to avoid criticizing poor fiscal policies.

He said, "Independence does not mean you have to remain silent, cannot express opinions, and cannot criticize. In fact, it means the opposite. When you are independent, you are not influenced by politicians, so you can say whatever you want. You can criticize anyone, and that is exactly what he is supposed to do."

At Thursday's Federal Reserve press conference, Powell avoided a question about the possibility of stagflation. Peter believes this is a major mistake. Powell said, "Well, our plan to address stagflation is to hope that there is no stagflation." Then he laughed, realizing how ridiculous that sounded.

Peter questioned, "What kind of plan is that? Your plan is to hope that stagflation does not happen. Clearly, stagflation is a possibility. So what are you going to do? That is the question, not what you hope will happen. What is your plan? They have no plan, and that is why they hope it does not happen."

He added, "But you know, Murphy's Law states that, right? Anything that can go wrong will go wrong, and we will have stagflation."

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