Economist Peter Schiff isn't a fan of President Donald Trump's latest pitch to voters. The veteran gold bug took to X to blast Trump's promise of a $5,000 payout to adult voters, calling it a "bribe" that would require domestic spending and force the Federal Reserve to fire up the money printers.

The result, according to Schiff? "Massive inflation" that could eclipse anything seen under former President Joe Biden.

In a separate post, Schiff added, "The craziest part is that Treasury Secretary Scott Bessent actually clapped following this ridiculous promise."

Schiff wasn't the only one throwing stones. Rep. Jamie Raskin also criticized Trump's proposed $5,000 "Trump Dividend," calling it a political bribe that could add $1.3 trillion to the national debt. He further accused the administration of fueling debt, wars, tariffs, corruption and loss of health insurance coverage.

Raskin didn't mince words on X either: "So after adding trillions of dollars to the national debt, driving it over an unprecedented $40 trillion, Trump now offers everyone a $5,000 political bribe ('the Trump Dividend') if we elect Republicans to run Congress. So add another $1.3 trillion to the wreckage of this…"

Trump Ties $5,000 Payout to Midterms

Trump's pledge, made at the Republican midterm convention on Wednesday, promises a $5,000 "dividend" to every adult U.S. citizen if Republicans retain both the House and Senate in November.

The payout, tied directly to the GOP's midterm performance, could cost an estimated $1.35 trillion, according to a Reuters report.

The President said the proposed payment would be possible because of strong U.S. economic performance, comparing it to a corporate dividend. He also said recipients would be required to spend the money domestically, though no enforcement mechanism has been detailed.

Inflation Risks Remain Elevated

Schiff's warning comes at a time when inflation fears are already high. July PCE inflation rose 0.2% monthly, while annual inflation held at 3.7%. Core PCE remained elevated at 3.3%, well above the Fed's 2% target.

TD Securities expects headline CPI to rise 0.37% month over month, driven by a 4.2% jump in gasoline prices, while core services inflation is forecast to increase 0.26% month-over-month.

However, the bank expects overall August inflation to remain relatively contained. Household goods and apparel are expected to drive the decline, indicating limited tariff pass-through on consumer prices. However, it sees upside risks because its forecast depends on large declines in tariff-sensitive categories.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by MarketDash editors.