With the “positive” jobs report that came out last Friday, most analysts now think the Federal Reserve will raise interest rates this month.

Peter Schiff argues that the jobs report wasn’t really that positive considering the labor participation rate and the number of part-time workers. But he concedes that the rate hike may happen anyway, because Janet Yellen has changed the criteria she’s using to base her decision. On this edition of the Schiff report, Peter explains why the Fed has changed its tune, and why a hike, if it happens, isn’t the beginning of an upward trajectory.

The Fed chairman is trying to minimize the importance of liftoff…It’s not liftoff, It’s the flight path. It’s the trajectory. It’s how high do interest rates go and how quickly do they get there. And in fact, what the Fed chairman has really been saying is that, ‘Look, we’re going to raise interest rates, but don’t worry, because we may not raise them again any time soon.’ And in fact, from my perspective, if we actually get a rate hike next week, that’s the only rate hike we’re going to get from the Fed. It’s not going to be the beginning of the tightening cycle; it’s going to be the end of the tightening cycle.”

(Video length 00:28:27)