Peter Schiff warns inflation could ‘skyrocket’ without major Fed rate hikes — how to protect your savings

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longtime market commentator and renowned economist wrote in a recent post on X (1).Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's howNew 2026 IRA rules are here. See how to protect your nest egg from inflation before the next tax deadline with physical gold. Get your free guide from Priority GoldDave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAPHe pointed to a sharp rise in February trade prices, with import prices climbing 1.3%, the largest monthly increase in nearly four years, according to government data (2).Citing U.S. Bureau of Labor Statistics data from February (3), he noted export prices also rose 1.5% over the same period.Annualized, Schiff says that translates to inflation running between 16.8% and 19.6% (1). Those levels are well above what most economists currently project for March, which is only around 3% (4).That’s before factoring in other pain points, such as oil prices, which he says have already surged by around 50%.Taken together, Schiff argued, “Unless the Fed raises rates several hundred basis points now, inflation will skyrocket.”At the core of Schiff’s argument is the idea of what is called “pipeline pressures” (or pipeline inflation) among economists (5).According to this idea, import and export prices reflect the cost of goods before they reach consumers. When those prices rise, it means higher costs work their way through the global supply chain and eventually show up in everyday prices.Essentially, costs move upstream, as though through a pipeline.Energy costs play a major role in this. A spike in oil prices can ripple through the economy, increasing transportation costs, raising production expenses and pushing up prices across multiple sectors at once.Schiff’s calculation takes those monthly increases and projects them forward over a full year — called ‘annualizing.’ Based on that approach, he argues inflation could be running at rates like 16.8% and 19.6%.However, that kind of extrapolation can sometimes overstate the trend, especially if based on a single month of data. 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