Economist Peter Schiff has warned that inflation is poised to worsen significantly and Americans’ cost of living “is going to go way up.” Citing that the Federal Reserve is financing a “massive bailout” for banks, he stressed: “This is going to cost Americans a lot of money.”

Economist and gold bug Peter Schiff explained why inflation is about to get much worse in the U.S. and Americans’ cost of living is about to increase significantly in several interviews this week. Commenting on recent bank failures, he said in an interview with Fox Business:

It’s because of the government that Silicon Valley Bank was in the position that it was. The reason it owned so many long-term, low-yielding U.S. Treasuries and mortgage-backed securities was because the Fed kept interest rates at zero for so long.

The economist added that banking regulators “pushed banks” into those risky investments “because they give them favorable accounting treatment.” He elaborated: “They don’t have to take any haircuts. They don’t have to mark them to market. So, the government created the problem.”

Schiff detailed in an interview with NTD News this week: “The economy is literally a house of cards. It’s imploding. But inflation is going to get much worse because the Fed has already returned to quantitative easing, whether they admit it or not.”

Following the failures of Silicon Valley Bank and Signature Bank — the second and third-largest bank failures in the U.S. — the government and the Federal Reserve stepped in and provided funding to guarantee all deposits of the two banks.

Schiff warned that no matter what the Biden administration and others are saying, Americans are going to pay for the bank bailouts. “The way they are bailing out all the banks is by printing new money and adding it into the economy and taking on mortgages and government debt onto their already bloated balance sheet,” he described, adding:

So, the Fed’s balance sheet is going to go up. The money supply is going to go up. And that means consumer prices are going to go way up.

“This is going to cost Americans a lot of money, not because their taxes are going to be raised, but because the Federal Reserve is financing this massive bailout by creating even more inflation. So, Americans are going to pay for this at the supermarket, at the gas station,” the economist stressed, emphasizing:

Their cost of living is going to go way up. If you thought inflation was bad last year, it’s about to get a whole lot worse.

The Federal Reserve raised interest rates by 25 basis points this week. However, Schiff previously said that “Future rate hikes are now pointless” because any effect will be more than offset by the Fed’s quantitative easing.