Price of Gold to Rise Significantly in Next Five Years

This following interview with Peter Schiff was originally published at Gold Eagle. Find it here.
Gold-Eagle: Fed Chair Janet Yellen recently hiked interest rates by 0.25%. What impact do you believe this will have upon US stocks and the national economy?
Peter Schiff: The air was already coming out of the bubble prior to this tiny rate hike. But now that the hole has been made larger by the hike, the air will rush out that much faster. The key is how much longer the Fed will wait before admitting that the economy is much weaker than they believed and reverse course.
Gold-Eagle: The last time the Fed increased the Federal Funds Rate was nine years ago in June 2006. In your view, do you believe the Fed will continue raising rates in 2016 with the objective of increasing inflation to stimulate economic growth?

Peter: No, I believe the Fed will reverse course sometime in 2016 and lower rates back to zero, and may in fact reduce them below zero. I also expect the Fed to launch another round of quantitative easing. Not because it works, but because it’s the only policy tool they believe they have.
Gold-Eagle: The US Dollar Index has been rising vis- -vis other currencies for nearly two years… and it surged up recently closing 99.32 on the news of the Fed hiking rates. In the event the US greenback continues to strengthen through 2016, what effect might it have on the US stock market?

This post was published at Schiffgold on DECEMBER 31, 2015.