Renowned economist Peter Schiff has issued a stark warning about the U.S. economy, suggesting that Federal Reserve rate cuts will not stave off a recession.

What Happened: Peter Schiff, a well-known gold advocate and critic of Bitcoin BTC/USD, has issued a warning about the U.S. economy. According to a post on X, Schiff believes that the Federal Reserve’s rate cuts will not prevent a recession.

Schiff stated on Tuesday, “The #Fed’s rate cuts won’t prevent a #recession. In fact, the U.S. economy has likely been in a recession for some time, though it hasn’t been officially confirmed yet.” He further elaborated that while short-term rates may decrease, long-term rates, inflation, and unemployment are expected to rise.

Schiff’s comments suggest that the economic situation is more dire than it appears. He concluded his post with, “Game over,” indicating a bleak outlook for the U.S. economy. This warning comes amid ongoing debates about the effectiveness of the Federal Reserve’s monetary policies.

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Why It Matters: Schiff’s warning aligns with recent concerns raised by other financial experts. Garry Evans, chief strategist of global asset allocation at BCA Research also predicted an impending U.S. recession, despite potential Federal Reserve rate cuts. The strategist emphasized that “every single one of us now believes” a recession is imminent, contrary to market optimism.

Moreover, in late July, it was noted that the Federal Reserve’s first rate cut might not significantly impact the market. Despite some fluctuations in the S&P 500, the index remained substantially higher compared to its October 2022 low.

Earlier in June, Mohamed El-Erian, chief economic adviser at Allianz, urged the Federal Reserve to implement rate cuts to prevent economic instability. El-Erian emphasized that the timing and extent of these cuts are crucial.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote