EXCLUSIVE: Fed Was Wrong On Inflation, 'We're Making It Very Hard For The Poor And The Middle Class To Catch Up,' Says Scaramucci

SkyBridge Capital founder Anthony Scaramucci is known for his bullish take on cryptocurrencies like Bitcoin BTC/USD, which could be a hedge against inflation.

In an exclusive Benzinga interview, Scaramucci shared his thoughts on the Federal Reserve and inflation.

What Happened: Scaramucci is among the leading voices who say the Federal Reserve may have been late in reacting to high inflation facing consumers.

The biggest problem with battling inflation and determining whether to increase or decrease bank rates is the uncertainty; even the Federal Reserve isn't entirely sure of the correct course of action, Scaramucci told Benzinga.

He said the Fed was wrong to say that inflation was transitory, as it turned out it wasn’t, but he isn’t blaming the central bank officials as they are doing “the best they can with the information they’re given.”

“The Fed doesn’t really know, they’re shooting in the dark a lot,” Scaramucci said on a recent episode of “The Raz Report.”

Scaramucci worries that the Fed might be operating with a misguided viewpoint, as the economy is weakening, but their lagging data says otherwise. “We’re making it very hard for the poor and the middle class to catch up,” he said.

He believes the Fed is going to be wrong in the future too.  “This is why I’m a big believer in the digital asset space.”

Scaramucci also argued that the U.S. has been wrong in the past with three major developments that have hurt the country financially: letting China into the World Trade Organization, going off the gold standard and weaponizing the U.S. Dollar.

Related Link: How To Buy Bitcoin 

What’s Next: Scaramucci believes the U.S. could see a soft recession and the Federal Reserve is going to have to cut rates.

A high level of debt of $33 trillion is a major concern going forward, with large interest payments.

“They can never pay that debt back,” Scaramucci said.

Scaramucci said the only thing that can be done now is to monetize the debt, which will see the U.S. dollar devalued in the future.

“Your government is afraid of telling you what’s going on.”

Scaramucci said if the U.S. Dollar goes down in value, assets like cryptocurrencies and houses could go up in value and outpace inflation.

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Watch the full interview with Anthony Scaramucci below. 

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