Peter Schiff, a notable economist, has once again shared his insights, warning that the United States is headed for a “full-blown financial crisis.” In a Wednesday morning post to X, Schiff noted that inflation continues to weigh heavily on the economy, as well as rising prices of valuable commodities. February import prices spiked 1.3% while export prices surged 1.5%, annualizing to inflation rates of 16.8%–19.6%. That’s before oil rose 50%.”
JUST IN: Peter Schiff says "we are headed for a full-blown financial crisis." pic.twitter.com/JtrqREsB9V
— Watcher.Guru (@WatcherGuru) March 25, 2026
The economist also urged the Federal Reserve to return to raising interest rates to lower the chances of a crisis. “Unless the Fed raises rates several hundred basis points now, inflation will skyrocket,” his post added. Schiff previously said earlier this year that the rising prices of Gold and Silver was also a sign that there was immense pressure on the US economy. However, now even precious metals are down in value in recent weeks.
Additionally, Peter Schiff also went on to say that higher inflation appears here to stay. The Europac economist blamed the rising inflation on deficit spending by US President Donald Trump & Congress, as well as an “overly accommodative Fed,” that succumbed to pressure by the administration to lower interest rates. “Trump will dismiss the surge in inflation as a temporary consequence of the war. But data confirms prices were already surging before Trump started the war.”
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Furthermore, Schiff likened the developing crisis to the one faced in the United States in 2008, but worse. “As inflation causes homeownership costs to soar, including mortgage rates, insurance, utilities, maintenance, and taxes, real estate prices will crash. The recent collapse in mortgage and refi applications is the tip of the iceberg. What lies beneath is a crisis worse than 2008.”
US stocks slightly climbed on Wednesday as investors weighed reports that the US has approached Iran with a plan to halt fighting, raising cautious hopes for an easing in a war that has roiled markets. The ongoing war, combined with the continued inflation battle, has set up the US economy for a tough ride for the rest of 2026. Schiff’s warnings affect not just traditional investors, but also crypto investors, especially those who jumped from traditional stock investments and precious metals to Bitcoin and cryptocurrencies.
