Today, the President of the Federal Reserve Bank of New York admitted that tightening financial conditions could affect the Fed’s “monetary policy decision.” In his February Gold Videocast, Peter Schiff translates William Dudley’s statements: the Fed is not going to be able to keep its promise of raising interest rates four times throughout 2016.

In fact, Peter believes the US is heading into an official recession and that monetary policy will loosen – not tighten – this year. He argues the Fed will soon follow the lead of the Bank of Japan and the European Central Bank by lowering interest rates into negative territory. Meanwhile, gold has risen more than 6% in 2016 and is up about 8% since its dip following the Fed’s December rate hike.

Video Length: 00:09:43

It’s this phony rally in the dollar; it’s this false belief in a higher dollar and higher interest rates that have wreaked havoc with emerging markets, with emerging market currencies, with commodities. All of these markets are going to be able to breathe a huge sigh of relief as the Fed backs away from these rate hikes and the dollar begins to tank…

The Fed’s statements were great for foreign currencies, great for gold, oil prices too… The real carnage is in the financial [markets]. All of the big banks are making 52-week lows today. Many of these banks are down about 50% from their highs. They’re headed for their 2008-2009 lows…”