Inflation is not a long-term problem, says Anthony Scaramucci
Global inflationary pressures are only fleeting, according to hedge fund billionaire Anthony Scaramucci.
The founder and managing partner of SkyBridge Capital believes the higher prices are due to supply chain restrictions that will be overcome.
“I don’t think inflation is long term. I think this is a transitional backlash to the crisis, “he said.
In October, consumer prices in the United States rose 6.2%, the largest increase in over 30 years.
Experts disagree on whether inflation is temporary. According to Mohamed El-Erian, senior economist at Allianz, the Fed’s notion that the price hike is temporary is losing confidence.
Last week, Fed Chairman Jerome Powell said the word means the current price hike will not be permanent.
“I think it’s probably a good time to take that word out and try to make it clearer what we mean,” he remarked.
Scaramucci also suggested that the Fed will likely gradually reduce its monthly bond purchases.
This is in part because more strains of Covid are unknown, he added, noting that many Americans are still not vaccinated, which could prolong the epidemic.
Deflationary drivers include technology and oil costs, he added.
When asked which trades he recommends, Scaramucci mentioned Coinbase and MicroStrategy.
No one can exist without these two professions, he noted.
He also claimed that bitcoin and ethereum are “well set up for the start of the year” as he expects more institutional investors to buy the coins.