Soros Fund’s CEO: Recession Is Inevitable and Crypto Is Here to Stay

Soros Fund Management’s chief executive and chief investment officer, Dawn Fitzpatrick, says cryptocurrency is here to stay and it’s already gone mainstream. She also believes that a recession is inevitable

Dawn Fitzpatrick, chief executive and chief investment officer of Soros Fund Management, discussed cryptocurrency and the U.S. economy in an interview with David Rubenstein, aired Tuesday on Bloomberg. Soros Fund Management was founded in 1970 by George Soros and his former business partner Jim Rogers.

Fitzpatrick was asked about her view on crypto. Referencing Fidelity’s announcement to allow bitcoin investments in 401(k) retirement accounts, she replied:

It’s here to stay. I think it’s gone mainstream.

The executive added: “The one caveat I would say is … climate impact is going to become increasingly focused so, in that context, I think ethereum is likely to gain some more traction over bitcoin.”

She also noted, “the blockchain technology is going to have some great applications.”

The Soros Fund Management chief shared her thoughts on reports that the U.S. economy shrank in the first quarter of this year. “When you look at that GDP number, I think the really important point is the reason it shrank is because of net imports, which were negative, which means we are importing a lot of goods from abroad. And that’s because consumer and corporate demand is robust. So I think there’s a silver lining in the reading of that GDP number,” she explained.

Replying to a question about whether she thinks a recession is coming, Fitzpatrick said:

There’s a lot of discussion about a looming recession and the bottom line is a recession is inevitable. It’s a matter of when.

Regarding high inflation and the Federal Reserve raising interest rates, the Soros Fund’s executive said: “There is no doubt interest rates are going to go higher and the Fed is going to move very very quickly. That said, interest rates net of inflation are still negative, so monetary policy is still really easy.”

She concluded: “I don’t think we’ll avoid a recession. I just think it will be further out than people expect.”

What do you think about the comments by Soros Fund’s CEO? Let us know in the comments section below.