The 2025 stress tests from the Fed aim to evaluate bank resilience under various economic shocks, but Schiff argues they overlook critical stagflation scenarios, which could lead to severe consequences for large financial institutions.

Schiff predicts that by the third quarter of 2026, the U.S. Unemployment rate could rise to 10%, with a significant drop in GDP and housing prices, challenging banks’ capacities to absorb potential shocks.