The Market is Fearing a Rate Hike - Anthony Scaramucci

SkyBridge Capital Founder, Co-Managing Partner and FOX Business contributor Anthony Scaramucci spoke with FOX Business Network (FBN) about the United States economy. Scaramucci said, "I think the market is fearing a rate hike” and “there is a fear of partial recession." Scaramucci also comments on the retail sales numbers saying, "I thought we would have more robust sales as a result of the sliding gas prices."

On the market:

“I think the market is fearing a rate hike. I think if you look at pricing on the index futures…I think it’s components. There is a fear of a rate hike, there is a fear of partial recession. I was with my partners last night with Governor Perry in Texas if the price of oil keeps going down you’re going to have a recession.”

On whether there is a deflation threat:

“It’s one part deflation, but it’s one part recessionary. Nine percent of GDP for this country is in Texas, you keep moving the oil prices lower you will knock out North Dakota, South Dakota, Oklahoma and Texas - you’re going to put the country in a slower growth pattern and less inflation. The Fed is super worried about that scenario because we are importing deflation from the rest of the world that includes Japan and Europe, so the market is worried. The markets also worried about what I’m calling the lagging effect on the consumer.”

On retail sales numbers:

“I thought we would have more robust sales as a result of the sliding gas prices… we’ve done a lot more research on it and apparently there’s usually a six - nine month effect on the consumer relates to gas prices.”

On where you should put your cash:

“I would put the money in the market. U.S. large cap stocks… the markets going higher. We were here in October the market is up 13 percent since that October low.”

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