(Invezz) -
- Per Scaramucci, inflation will fade away after governments ease chain supply constraints.
- He believes the Fed will take a long time to taper and this will trigger aggressive stock trading.
- Scaramucci recommends that people invest in crypto-based stocks like COIN and MSTR.
SkyBridge Capital founder and managing partner Anthony Scaramucci believe inflation is transitory. He said this during an interview on December 8, adding that the increasing prices result from supply chain constraints. To this end, he believes that easing the difficulties in chain supplies will help address the rising inflation.
According to Scaramucci, another contributing factor to the rising inflation is that people are programmed to think linearly. However, things will start happening exponentially. Apart from supply chain clearing up, he believes that once the world goes through two or more COVID variants, people will start considering the pandemic endemic.
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With new anti-viral drugs coming to the market, Scaramucci, who is also a former White House Director of Communications, claims the Fed will begin to taper in mid-2022. Still, he believes the tapering might take a long time, leading to aggressive stock market activity.
Responding to a question on which stocks he would recommend, Scaramucci said he believes Coinbase’s COIN and MicroStrategy’s MSTR are suitable investments. He also touted Bitcoin (BTC/USD), Ethereum (ETH/USD), and Algorand (ALGO/USD), saying they are likely to rally in January 2022 as more institutional investors embrace them.
Varying sentiments from experts
While Scaramucci’s opinions on inflation are similar to those of the Federal Reserve, other experts don’t share the same outlook. An example is Allianz Chief Economic Advisor Mohamed El-Erian, who said the Fed is losing credibility with its narrative that inflation is transitory.
At the time, El-Erian said,
I’ve argued that it is really important to reestablish a credible voice on inflation and this has massive institutional, political and social implications.
He added that the Fed’s stance on inflation weakened its guidance on the matter and undermined President Biden’s economic agenda. He also pointed out that people should not forget the low-income citizens are hit hardest by rising consumer prices.
After El-Erian shared his sentiments on the matter, Jerome Powell, the Fed’s Chairman, came out to say that the central bank uses the term transitory to mean that the current price increments will not leave a permanent mark on the economy.
This news comes after consumer prices in the US increased by 6.2% in October. This became the highest rise in over 30 years.
By Jinia Shawdagor
Dec 9, 2021
