Duquesne Family Office founder, billionaire investor Stan Druckenmiller announced that the US economy will start to slow down as of the current quarter and he expects a hard landing.
Making evaluations on Tuesday at the 2023 Sohn Investment Conference, Druckenmiller stated that he pulled the recession forecast to a closer date, pointing to a series of developments, including the decline in retail sales and problems in regional banks.
“I don’t foresee a worse picture than 2008,” said Druckenmiller.
Druckenmiller, who has a net worth of $9.9 billion and is among the 500 richest people in the world according to the Bloomberg Billionaires Index, described the ‘hard landing’ as an unemployment rate of over 5 percent, a 20 percent decline in corporate profitability and increasing bankruptcies.
More likely to survive recession, according to Powell
Fed Chairman Jerome Powell stated that it is possible for the US to experience a recession that he hopes will be moderate, but that he sees avoiding a recession as a greater possibility.
Powell commented that the crisis of confidence in the banking sector resulted in tightening credit conditions, saying, “Tighter credit conditions seem to have an impact on economic activity, hiring and inflation.”