American president Donald Trump and the Fed are trying to convince the world that the US economy has been doing well. It seems, though, that the Fed is actually worried about market liquidity. The stock market keeps hitting new highs. However, Peter Schiff, the CEO of Euro Pacific Capital, thinks that this rapid growth was caused by the Federal Reserve’s easing monetary policy rather than by good economic performance. Peter Schiff explains: “Despite the fact that the economic data is deteriorating. Despite the fact that corporate earnings are falling, it is the Fed that is pushing this market to new highs by cutting interest rates, by indicating to the markets that they don’t have to worry about rate hikes no matter what happens with inflation. The Fed’s not going to raise interest rates. Oh, and by the way, they’re doing quantitative easing, and they’re going to print as much money as they have to keep the markets going up and to keep the economy propped up.” Surprisingly, the Fed’s policy looks tougher compared to other leading central banks. For instance, the ECB, the Bank of Japan and other regulators keep the key rates at even lower levels. In fact, compared to the world economic watchdogs, the Fed decided to stick to aggressive monetary policy. Today, all major banks are pursuing a policy of negative interest rates. Nevertheless, even after the previous key rate reduction, the Fed's target rate is still higher than at the Bank of England. At the same time, it is equal to the target rate of the Bank of Canada.
