Appearing on Yahoo! Finance, Peter Schiff underscored that the Federal Reserve has been bluffing about raising interest rates. In fact, they will continue to bluff for as long as possible until they're forced to deal with a deflating asset bubble. He also pointed out the arbitrariness of the Fed's supposed goal posts: previously they had said they would raise rates when unemployment officially got below 6.5%, it is now at 5.5% and they want to keep waiting. Peter said the Fed has the same confused attitude about inflation:

I think they're going to be just as tolerant on inflation when inflation is 2.5 or 3%. They're still not going to raise rates, but believe me, when it's officially at 3%, it's going to be a lot higher than that, and consumers are really going to be feeling the pain.”

Video Length: 00:03:33

Highlights from the interview: