'Post-Traumatic Economic Stress' to Keep QE Flowing: Pro
As the Federal Reserve (Fed) starts a two-day committee meeting on Tuesday with investors watching for further signals that it may start winding down its quantitative easing program, Anthony Scaramucci, managing partner at investment firm Skybridge Capital, told CNBC that monetary easing will continue for the next two years.
A decision on Wednesday afternoon by the Federal Reserve's Open Market Committee will determine whether the Fed will continue its current stimulus policy. In December it announced it would buy $45 billion in additional Treasurys every month, on top of the $40 billion a month in mortgage-backed securities it has already committed to.
The total size of its QE (quantitative easing) program is now $85 billion a month. This stimulus has divided economists in the U.S, with some concerned that the tactic will cause inflation. It is not a concern Scaramucci shares.
"I don't think the Fed comes out of this thing until 2015 and the reason why is that they've got to continue to reduce the panic that is in the markets. I think we're still experiencing post-traumatic economic stress," he told CNBC Tuesday.
"I think he has done a magnificent job despite the criticism."
(Read More: Wall Street Boosts Outlook for QE: Survey)
A "financial war" took place in 2008, according to Scaramucci, and the central bank will continue to stay in the markets, keeping interest rates low as people are still very fearful, he said.
Bernanke is effectively not just printing money. Rather, he is using numerous tools in his toolbox and doing something which is "astonishing and unprecedented".
But Scaramucci warned that if Bernanke is not careful he could become the "chairman of the federal reserve for wealthy people" instead, with average U.S. citizens seeing their incomes severely squeezed.
(Read More: Why Fed's Role as Fiscal Shock Absorber Is Ending)
"He's got asset reflation taking place, at the same time he's got food and energy prices becoming more expensive in the United States and around the world. And if you're on fixed means, your pizza pie slice of money going towards food and energy is increasing and that's going to make it very difficult for you," he said.
"So putting the drugs in the body, there is a side effect to that, which we are experiencing."
—By CNBC.com's Matt Clinch