Anthony Scaramucci, former White House Communications Director, has challenged Wall Street’s assumption that President Donald Trump will leave office in three and a half years and warned that the full impact of his tariffs is yet to come.
Scaramucci Criticizes Wall Street’s Optimism Over Trump’s Exit
In a video posted over the weekend, Scaramucci expressed concern that Wall Street is complacent, believing Trump's time in office is limited.
He highlighted the President's $200 million White House ballroom renovation project, questioning the belief that Trump will leave in 3.5 years.
"Do you know anybody who builds a $200 million ballroom onto their house and moves out in three and a half years?" Scaramucci said. "The guy’s making expansive renovations to the White House. Doesn’t smell like a guy that wants to leave anytime soon."
Scaramucci continued, suggesting that Trump's presidency is far from over, pointing to the expanding renovations and a growing "personality cult" around him.
He cautioned Wall Street that a "cleanup" of Trump's policies will be needed but is unlikely to happen quickly. The challenge, he warned, will be economic, particularly due to the ongoing trade war and the implementation of tariffs.
The White House did not immediately respond to Benzinga's request for comments.
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Trump Rules Out Third Term
In a May interview with NBC News, Trump said he does not plan to seek a third term, confirming that his presidency would conclude after the 2028 election. Trump cited constitutional limits on presidential terms and said he intends to "pass the torch" to another Republican.
While noting past speculation — including the sale of red "Trump 2028" hats — Trump dismissed the idea of another run, saying his focus is on "four great years" before handing over the reins "to somebody, ideally a great Republican."
He named Vice President JD Vance and Secretary of State Marco Rubio as strong contenders but refrained from making any endorsements, calling it "far too early" to decide.
The Real Tariff Pain Hasn't Hit Yet
Turning to the impact of Trump’s tariffs, Scaramucci stressed that Wall Street is ignoring the true economic consequences of the administration’s protectionist policies.
While some have said that the tariffs haven't yet led to a recession, Scaramucci argued that the real effects are still to come. He pointed out that many economists are beginning to notice a slowdown in capital allocation decisions, with tariffs starting to hurt U.S. businesses.
“So the MAGA narrative is ‘ho ho still got a strong economy despite our tariffs,’ but the real narrative should be, ‘No, the tariffs haven’t fully kicked in yet,'” he stated in the video.
Rising Inflation And Economic Pressures
The effects of the tariffs are already starting to show in inflation, with core inflation set to rise in the coming months. Economists forecast the Consumer Price Index (CPI) to increase by 0.2% month-over-month in July, largely driven by higher import duties.
U.S. businesses have been absorbing most of the costs, but this burden is expected to shift to consumers. Goldman Sachs economist Elsie Peng predicts that by October, U.S. consumers will shoulder 67% of the tariff costs, up from 22% currently.
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Photo Courtesy: Al Teich On Shutterstock.com
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
