He said this despite the failure of First Republic Bank just days before the Fed meeting. Peter Schiff appeared on the Claman Countdown on Fox News and argued that Powell and others are wrong. He said the US economy is in a financial crisis worse than in 2008.

Andy Brenner, head of international fixed income at National Alliance Securities, also appeared in the segment. He started things off by saying problems in the banking sector are "not over by a longshot."

Liz Claman asked Peter why the Fed raised rates another 25 basis points despite the shakiness in the banking sector. Peter said they did it because that's exactly what the market expected.

That's what the Fed does — what the markets expect."

But Peter said the move by the Fed isn't going to do anything to bring inflation down.

The elephant in the room with respect to inflation is the fiscal policy – the debt, not the ceiling – but the fact that we're running these massive deficits. But until the Federal government reduces spending, these quarter-point increases are going to be completely ineffective."

Peter said the problem is Powell refuses to call Congress out and mention that the driving force behind all of the inflation is reckless government spending.

And as long as the government keeps spending, inflation is going to get worse, and so is the current financial crisis. Nobody wants to admit we're in a financial crisis. It's worse than the one we had in 2008. It's just getting started. Ultimately, the Fed is going to cut. But it's going to cut as inflation is accelerating."