Billionaire investor Druckenmiller doesn’t rule out ‘something really bad’

September 28, 2022 11:20 a.m. EDT

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According to Stanley Druckenmiller, the Federal Reserve’s attempt to quickly unwind the excesses it helped create over a decade of accommodative monetary policy will not end positively for the US economy. He made the comments during CNBC’s Delivering Alpha Investor Summit in New York on Wednesday.

The billionaire investor said his ‘central case is a hard landing’ by the end of 2023, adding he wasn’t sure when, but it will definitely be by the end of next year .

“I wouldn’t be surprised if it wasn’t taller than the so-called average garden variety,” Druckenmiller said. However, he also said he “isn’t ruling out anything really bad.”

Like many others, the famed investor believes that quantitative easing and zero interest rates over the past 10 years created an asset bubble, and now that those factors are reversing,” we’re in big trouble.”

Druckenmiller said the Federal Reserve’s transitory inflation theory was wrong, and “the repercussions of that are going to be with us for a long, long time,” while the “risk-reward of owning assets doesn’t make much sense”.

By Sam Boughedda

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