The U.S. economy is heading into a free fall that will be worse than the Great Recession of 2008, according to Euro Pacific Capital CEO Peter Schiff.

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The economic forecaster is predicting the Federal Reserve will cut interest rates to zero and launch quantitative easing, a monetary policy where the central bank purchases Treasuries from financial institutions to stimulate the economy.

“The dollar is going to go through the floor and it’s going to take the bond market with it and the next crisis, it’s not subprime mortgages, it’s going to be in the Treasury market,” he said on “After the Bell” on Wednesday.

Schiff’s comments come after the Dow Jones Industrial Average plummeted 800 points, marking the worst drop of the year and the fourth-largest daily point drop in history. The yield on the 10-year U.S. Treasury bond fell below the yield on the 2-year U.S. Treasury for the first time since the Great Recession, worsening global recession fears.

"There’s no way out and it's a political disaster for Trump because the recession is going to start before he finishes this term." - Euro Pacific Capital CEO Peter Schiff

Schiff said the Fed is done inflating asset bubbles, which will cause inflation to hit consumers, especially at gas stations and supermarkets, killing President Trump's reelection hopes.

“This is going to be the inflationary recession, there’s no way out and it's a political disaster for Trump because the recession is going to start before he finishes this term, which means he won’t have a second term,” he said.

Schiff added that the economy is on the verge of going through a period of stagflation or a period of rising inflation.

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“As we move into this recession, consumer prices are going to rise even faster and once the dollar starts to fall that’s going to push consumer prices up even more,” he said.