Donald Trump has a lower chance of winning the 2020 presidential election than in 2016, this according to Peter Schiff, CEO of Euro Pacific Capital.

“I don’t think [Trump] is going to get re-elected. It’s not impossible. I thought it was far more likely that he was elected originally, but I don’t think his prospects are as great now as they were back then, although, the conventional wisdom is the opposite. Most people thought he had no chance of winning next time and he think he can’t lose this time because they think we have this great economy,” he said.

Schiff said that regardless of who the Democrats nominate, if the economy goes into a recession by the elections, Trump will lose.

On monetary policy, the Fed will cut all the way to 0% if needed, contrary to what markets are pricing in, he said.

“I agree, there is a low probability they’re going to cut this week, the Fed seems to be indicating to the markets that it’s going to wait and see, but what the Fed has assured the markets is that under no circumstances will they raise rates,” Schiff said, noting that regardless of economic data, the Fed has only two choices: to keep rates the same or lower them.

Equities have been rising on the back of easing monetary policy expectations, he added.

Schiff’s comments come as the futures markets are pricing in a near certainty that the Fed will keep rates the same at their meeting this week.

By Kitco News

Posted by The non-Conformist