Peter Schiff Warns US Inflation Set to Rise Further
Economist and gold advocate Peter Schiff said the US economy is far more fragile than markets assume, arguing that US inflation is heading higher rather than easing.
In a VRIC Media interview, Schiff cited CPI strength (3.8% YoY, up from 3.3%) and said the annualized April pace could be near 7.2%. He also argued oil prices were already higher when those readings were calculated, and he does not expect upward price pressure to fade.
Schiff blamed policy for the inflation outlook. He said the Fed’s balance sheet expanded by more than $200B in 2025 and that money supply growth (at least ~5%) conflicts with a 2% inflation target. He expects the Fed to accelerate bond purchases—especially if the 10-year yield breaks decisively above 4.5%—which he says would mean a larger balance sheet and more inflation, not less.
He warned 30-year Treasury yields could break above 8%, which would strain US government finances given the debt load. He also claimed the true fiscal problem is far larger than the ~$39.2T headline figure when unfunded liabilities are included.
On crypto markets, the main takeaway is macro-driven risk: higher-for-longer yields and renewed quantitative easing fears typically raise USD-rate volatility and can pressure speculative risk assets. Schiff also reiterated a bullish hedge view via gold and mining stocks, projecting gold could reach $20,000 over the next decade.
Separately, Schiff called Strategy Inc’s STRC preferred stock “a pure Ponzi,” criticizing Saylor-linked messaging and arguing STRC diverts demand away from BTC.
Bearish
Schiff’s core claim is that US inflation is not stabilizing—policy makers are unlikely to “get ahead” of it. If market yields move higher (he flags 10Y above 4.5% and a potential 30Y break above 8%) while the Fed’s balance sheet keeps expanding, this usually translates into tighter financial conditions (higher discount rates, more USD-rate volatility). Historically, that environment can pressure crypto beta assets like BTC, especially during periods when traders are expecting rate cuts.
Short term: expect volatility and risk-off flows when bond yields reprice upward. BTC may struggle if real yields rise or if liquidity expectations deteriorate.
Long term: the article also reinforces Schiff’s hedging framework (gold/miners as inflation hedges). That can support a “diversification” narrative for some investors, but it doesn’t necessarily negate near-term bearish pressure from higher yields. In similar past cycles, when inflation re-accelerates and the market shifts from “cut” to “higher-for-longer,” BTC often lags until either inflation data cools or rate-cut expectations return.
Net: macro signals dominate—US inflation + yield risk outweigh the hedge narrative, making the trading backdrop more bearish for BTC in the near term.