Despite its independence, the Federal Reserve may quietly want a bear market that takes down a president that loves tweeting about the stock market.

Peter Schiff, CEO of Euro Pacific Capital, told TheStreet the "[Janet] Yellen put" in the markets could expire under President Trump. "I don't know if the Fed has much love for Trump," he said, adding that the Fed had the markets' back during the Obama Administration.

"Maybe the Fed would be happy to see a bear market that could be blamed on Trump." Schiff thinks the markets could easily correct 20%.

One black swan event Schiff sees is the notion of investors abandoning the euphoria over Trump's presidency, which helped fuel the stock market rally this year.

"We've had a huge move up since the election of Trump even though prior to the election the expectation was if Trump won it [would be a disaster for markets]," he said.

When asked if the two straight quarters of double-digit earnings growth has sparked the rally in stocks this year, as opposed to solely Trump, Schiff pointed to earnings headwinds in the retail sector.

The Federal Reserve is scheduled to meet later this week

Subscribe on Youtube for extended interviews, Cramer Replays, feature content, and more!

Watch the full interview with Peter Schiff:

More from Opinion

Wednesday Wrap-Up: The Bear Bites Into Apple

Wednesday Wrap-Up: The Bear Bites Into Apple

Tencent's Earnings Are Reminder That There's More to Its Story Than Just Games

Tencent's Earnings Are Reminder That There's More to Its Story Than Just Games

Apple Supplier Lumentum's Warning May Not Be as Bad for Apple as Feared

Apple Supplier Lumentum's Warning May Not Be as Bad for Apple as Feared

Why Disney's Streaming Strategy Could Work, Even Though it Won't Topple Netflix

Why Disney's Streaming Strategy Could Work, Even Though it Won't Topple Netflix

Video: What Does Alibaba Actually Do?

Video: What Does Alibaba Actually Do?