'What's happening right now (is) we're starting to price in the reduction in earnings for 2020 and the possibility now of a recession,' said Anthony Scaramucci, founder and co-managing partner of Skybridge Capital.
, which include slashing interest rates to zero, were aimed at countering some of the outbreak's impact on the U.S. economy.
Still, Scaramucci said there's more than a 90% chance that the U.S. economy could contract by between 4% and 6% in the second quarter this year. It's also "very, very likely" the same could happen in the third quarter, he added.Scaramucci's comments come as officials around thein efforts to slow the outbreak's spread. On Sunday evening, both New York City and Los Angeles announced entertainment venues will close and restaurants will be limited to takeout and delivery.
If the U.S. economy does indeed enter a recession, that would harm Trump's re-election chances, said the former White House communications director, who was fired by the president in 2017 after less than two weeks in the job. "I think it augurs for an electoral defeat for President Trump, particularly if we get a recession. You typically don't get a two-term president if you're in a recession in an election year," said Scaramucci, who's been a frequent critic of Trump.
"No one saw this coming, but those are the facts and that probably knocks him out of the box in 2020," he added.
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