US inflation rate rises to 8.3% in August, Peter Schiff says “days of less than 2% inflation in America are over” – Economy Bitcoin News

On September 13, the U.S. Bureau of Labor Statistics reported that the country’s consumer price index (CPI) inflation rose 8.3% annually in August. The reduction was less than expected and market analysts believe the US Federal Reserve will continue its aggressive rate hikes going forward.

Consumer prices in the United States have increased at an annual rate of 8% of 8.3%, according to the latest CPI report

US inflation numbers for August are on the way, according to recent calculations published by the United States Bureau of Labor Statistics. The Bureau of Labor Statistics wrote on Tuesday that “The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.1% in August on a seasonally adjusted basis after having remained unchanged in July – Over the past 12 months. , the index of all articles increased 8.3 per cent before the seasonal adjustment ”.

Market strategists did not expect the inflation rate to be this high as reports note that “economists expected prices to fall 0.1% in August over the month and slow to an annual rate of 8%. “. Economist and gold bug Peter Schiff was quick to criticize the US dollar and the country’s fiscal policy. “Once again the market reaction [a] much higher than expected inflation is wrong, “Schiff tweeted Tuesday. “Inflation is set to stay and will get much worse despite rate hikes, due to over a decade of inflationary monetary and fiscal policy. This is very bearish for the dollar and bullish for gold,” added Schiff.

Amid the worse-than-expected inflation report, all four major Wall Street indices (NYSE, Nasdaq, Dow Jones, S&P 500) slipped significantly after the Bureau of Labor Statistics report released Tuesday. All five precious metals (gold, silver, palladium, platinum, rhodium) have suffered losses against the US dollar in the past 24 hours, with gold down 1.47%. After posting some gains the day before, the cryptocurrency economy also lost 5.8% against the dollar on Tuesday. During the last day, bitcoin (BTC) lost 6% of its value in USD while ethereum (ETH) fell 8%.

Bankrate.com analyst says CPI is far from the Fed’s 2% target, Peter Schiff says inflation rates below 2% are a thing of the past and will never return

Meanwhile, Tuesday’s CPI data leads investors to believe the Fed will be aggressive when it raises the benchmark bank rate at the next meeting. Mark Hamrick, senior economic analyst at Bankrate.com, thinks the August inflation report won’t do much to get the Fed to act dovish next week. Hamrick expects the US central bank to keep the federal bank rate confined until inflation subsides.

“They want to take their benchmark rate [economically] restrictive territory and keep it there longer, “Hamrick said.” The anticipation of what President Jerome Powell said must be ‘compelling evidence that inflation is falling, consistent with inflation returning to two percent. ‘… We stay away from that destination. ”Schiff thinks it’s absurd that people expect a return of the inflation rate of 2% and the gold bug firmly believes that days of inflation below 2% will always be a distant memory. In a tweet posted on Monday, Schiff stressed out:

The days of less than 2% inflation are over. There is no going back to the anomaly experienced between the financial crisis of 2008 and 2021. The inflation chickens that the Fed released with QE have finally returned home. The price increases experienced so far are just the beginning.

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What do you think of the latest inflation report? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is the News Lead of Bitcoin.com News and a financial technology journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News on the disruptive protocols emerging today.




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