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Schiff: I'm right about the Fed, I'll be right about stocks

Peter Schiff has a strong message for investors: It's time to wake up.

The longtime Fed foe took a victory lap on CNBC's "Futures Now" Tuesday, days after Fed chair Janet Yellen announced she would leave interest rates unchanged for the time being.

"The whole world has been fooled by this Fed con," said the Euro Pacific Capital CEO. "Most people believe the Fed. They believe the Fed is going to raise rates," he added.

Schiff has long posited that the Fed will never raise interest rates, contrary to general consensus. In fact, Schiff believes the likelihood of another round of easing is greater than a rate hike. "I don't think she ever intended to hike rates," he said. "They are in a monetary roach hotel, and they will never be able to raise rates back up."

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Recent turmoil in global equities is just the latest reason for the "data dependent" Fed to hold off on its first hike in nearly a decade. But for Schiff, this isn't anything new, as he has been calling the Fed's bluff long before the latest bout in volatility.

"This economy is rapidly decelerating and the Fed just doesn't want to acknowledge that its monetary medicine didn't work and the patient is now sicker than ever," said Schiff. "So the Fed just wants to maintain the pretense that they are going to raise rates but in the end they don't actually want to do it," he added. "[Yellen] is going to pretend they can raise rates and pretend it's right around the corner but will keep coming up with one excuse after another to why they aren't doing it."

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According to Schiff, if the Fed continues to kick the can down the road eventually "foreign exchange markets are going to get wise to the Fed's con," and "there's going to be a currency crisis." For him, the air is already being let out of the dollar, and once the rally reverses, the bond market will collapse along with it. "There's a bubble in the dollar," and "people get trapped in this bubble and they can't see it."

To his naysayers, Schiff concluded, "It's not the first time I've been against consensus and it won't be the last. And I'm usually right."

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