Druckenmiller predicts a 'hard landing' and recession in 2023.
By The Exchange Team
Stanley Druckenmiller thinks the Fed's attempt to fast unravel the excesses it helped establish with easy monetary policy would hurt the U.S. economy.
"Our central case is a harsh landing by '23," Druckenmiller said. "I'll be shocked if there's no recession in '23. I don't know when, but maybe by '23."
The famed investor, who's never experienced a poor year, worries it could be worse. He added, "I don't rule out something horrible."
Druckenmiller argues that the decade of exceptional quantitative easing and zero interest rates has resulted in an asset bubble.
"All those elements that generate a bull market are not only ending, they're reversing," Druckenmiller added. We're in severe trouble.
The Fed is tightening more aggressively than in the 1980s. The central bank last week raised rates three times in a row.
Following a six-day losing streak, the S&P 500 surpassed its June low and set a new bear market bottom on Tuesday.