Warren Buffett Is RIGHT - The Fed's 2% Inflation Target Is Robbing You!

This is a short monologue, not an interview, centered on Peter Schiff reacting to a Warren Buffett interview comment about the Federal Reserve’s 2% inflation target. Schiff agrees with Buffett’s criticism and extends it further: if the Fed’s stated goal is price stability, he argues there is no justification for forcing a 2% annual rise in prices. He says that compounding 2% inflation steadily destroys purchasing power and effectively robs people of their wealth. Schiff then goes beyond a zero-inflation target and argues that prices should be allowed to fall if market forces make that possible, because lower prices benefit both consumers and producers. …

1. Schiff endorses Buffett’s criticism of the Fed’s 2% inflation target.
2. He argues inflation compounds and steadily reduces purchasing power.
3. He says there is no logical reason for the Fed to target higher prices if its job is price stability.
4. He goes beyond zero inflation and argues deflation can be beneficial when driven by market forces.
5. His core thesis is anti-central-bank price management and pro-free-market pricing.

• The argument assumes deflation is generally harmless or beneficial, but that is disputed in mainstream macroeconomics because debt burdens and nominal rigidities can make falling prices destabilizing.
• He treats the Fed’s 2% target as theft-like wealth transfer without engaging the counterargument that low positive inflation can help grease wage/price adjustments and reduce deflation risk.
• The claim that producers are always better off with lower prices is oversimplified; lower output prices can compress margins even if consumers benefit.