Peter Schiff, CEO of Euro Pacific Capital, has been saying for some time that the Federal Reserve won't give up quantitative easing, and he's sticking to his guns.
"Now that QE is apparently a thing of the past, it is alarming how little anxiety has been sown on Wall Street," he writes on Real Clear Markets.
"Most economists recognize that to normalize policy the Fed must reduce the amount of securities it holds. Logical analysis should lead you to believe that stocks would not fare well."
The Fed is halting its bond purchases this month. Major stock indices have again hit record highs this week.
To be sure, Schiff isn't predicting a stock crash. "I simply expect, as no one else seems to, that the Fed will go back to the well as soon as the markets scream loud enough for support," he says.
"At that point, it should become clear to everyone that there is no exit from the era of QE and that there is nothing normal or organic about the current rally."
Meanwhile, Martin Feldstein, chairman of the White House Council of Economic Advisers under President Reagan, says the real issue is the Fed's ultimate interest rate hikes.
"The Fed's big challenge is to get interest rates back up to normal levels without upsetting the apple cart," he told CNBC. The central bank is expected to begin raising rates around mid-2015.
"I worry that these exceptionally low interest rates are driving investors and lenders to take all kinds of risks to pick up some yield. And that's how we can get in trouble again," Feldstein said.
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