Inflation not a long-term problem says Anthony Scaramucci
Global inflationary pressures are just ephemeral, according to hedge fund billionaire Anthony Scaramucci.
SkyBridge Capital’s founder and managing partner believes higher prices are due to supply chain restrictions that will be overcome.
“I don’t see the inflation being long term. I think this is a transitory aftermath of the crisis,” he said
In October, US consumer prices rose 6.2%, the largest increase in over 30 years.
Experts disagree on whether inflation is temporary. According to Allianz’s senior economist Mohamed El-Erian, the Fed’s notion that rising prices are temporary is losing confidence.
Last week, Fed Chairman Jerome Powell said the word means the current price rise won’t be permanent.
“I think it’s probably a good time to retire that word and try to explain more clearly what we mean,” he remarked.
Scaramucci also suggested the Fed will likely reduce its monthly bond purchases gradually.
That’s partly because more Covid strains are unknown, he added, stressing that many Americans are still unvaccinated, which might prolong the outbreak.
Deflationary drivers include technology and oil costs, he added.
When asked what trades he recommends, Scaramucci mentioned Coinbase and MicroStrategy.
No one can exist without those two trades, he remarked.
He also claimed bitcoin and ethereum are “set up nicely for the beginning of the year” when he expects more institutional investors to buy the coins.