China News Service, January 3 (CBS) reported that Michael Burry, a well-known American investor, recently gave a pessimistic forecast for the US economy. He believes that the US economy is likely to fall into recession this year.
Burry, the prototype character of the movie "The Big Short", became famous for successfully predicting the impending burst of the US real estate bubble before the outbreak of the 2008 financial crisis.
He posted on social media on the 1st local time, saying: "U.S. inflation has peaked, but this is not the last inflation peak in this cycle. The consumer price index (CPI) may be lower, and may be lower by the second half of 2023 By any definition, the U.S. is headed for a recession."
In the face of a sluggish economy, the Federal Reserve will cut interest rates and the government will take stimulus measures, Burry predicts, which in turn will spark a new bout of inflation.
Bank of America chief economist Michael Gapen also believes that the U.S. economy will head toward recession in 2023.
He said in an interview with the media on the 1st: "I agree with most people's predictions that 2023 may be a difficult year for the United States."
American economist Ed Yardeni said in a report that in 2023, the U.S. economic recession will involve a wide range of areas, and it will be difficult for the stock market to resume the bull market.
According to a survey by The Wall Street Journal in October last year, economists believe that the possibility of a recession in the US economy within a year is as high as 63%.