Anthony Scaramucci, the former White House communications director, has declared that the United States is already in a recession, pointing to the economic policies of former President Donald Trump as a primary cause. Scaramucci, who spent 37 years on Wall Street, made the claim in a recent interview, joining a chorus of economists like Mark Zandi and Paul Krugman who have raised concerns about an economic downturn.
Trump Policies Fuel Economic Pain
Scaramucci highlighted the economic strain on lower and middle-income Americans, stating that many have been forced to cut back on spending due to rising costs. 'If you just look at the data for lower and middle-income people, [that group] more or less has to stop spending,' he said. He also cited potential shocks to food and energy prices, including disruptions in fertilizer supply and the energy crisis stemming from Trump's Iran policy.
'If you're asking me, 'Are we currently in a recession?' I believe, after 37 years on Wall Street, that we already are in one,' Scaramucci said.
Data Lag Masking Reality
Scaramucci warned that the latest economic data is lagging behind the reality on the ground. He predicted that future revisions will reveal the US economy has experienced no growth for two consecutive quarters since the start of the year, meeting the technical definition of a recession. However, he noted this downturn might not be officially confirmed until October, when April-May numbers are revised.
While Scaramucci supports the Trump administration's decision to impose a military blockade on the Strait of Hormuz, he believes the broader economic policies pursued during Trump's tenure have exacerbated the current crisis. 'The data is going to come out and [it's] going to tell you that we're in a recession,' he concluded.