“I would be surprised if we didn’t have a recession in 2023,” said Stanley Druckenmiller.
And the billionaire warned that the Fed’s “mistake” would have consequences “for a long time”.
Markets continue to decline, with Bitcoin (BTC) supporting $18,000 and major Wall Street stocks at yearly lows. This panorama occurs as a forecast of a recession (a decrease in economic activities) in the US in 2023 that could spread globally.
Among those who expected this, the Billionaire investor Stanley Druckenmiller, who said, “I would be surprised if we don’t have a recession in 2023.” This was commented on September 28 at the CNBC Alpha Investor Summit organized in New York.
The specialist warned that although he does not know at what precise moment it will be launched, A recession is expected by the end of 2023. He also indicated that he does not rule out that it could be a “really bad thing” as a result of the US Federal Reserve’s policies.
He delved into the fact that the Fed’s low interest rates for most of the past decade created an asset bubble. That is, they reinforced their demand by raising their prices. But he noted that “all the factors that cause a bull market are not only stopped, but reversed.” “We are in serious trouble,” he warned.
exactly Risky asset prices are falling this year as the Federal Reserve changes this policy to dramatically raise interest rates. The most recent was on September 21, causing BTC and other assets to fall. This adjustment, which the agency warned will continue, aims to reduce current inflation from 8.3% to 2%.
Druckenmiller accuses the Fed of fueling the recession
Druckenmiller also accused the Fed of making a “fatal mistake”. By classifying inflation as “temporary” in 2021. He determined that the fact that they saw it as a product of a “supply chain and epidemic” rather than because of their policies would have consequences “for an extended period.”
“When you make a mistake, you have to admit you were wrong and move on with those nine or 10 months, where they just sat and bought $120 billion in bonds,” he said, skeptical of the Fed’s actions. In this way, it is concluded that agency decisions Could be the direct cause of future recessionin conjunction with other specialists reported on CriptoNoticias.
it is expected that Recession continues to affect market prices Traditional currencies and cryptocurrencies, which reduce investors’ appetite for risk. However, there is debate in the community about how it affects bitcoin, with some arguing that if it is viewed as a store of value in such an environment, it may get a boost.