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Hedge Fund Mogul Stanley Druckenmiller Warns of ‘Hard Landing’ for US Economy Billionaire hedge fund manager Stanley Druckenmiller has a dire prediction for the U.S. economy: a recession is looming, and it’s likely set to hit this June. Druckenmiller’s forecast comes as American consumer spending remains low, and is largely driven by credit card usage. Druckenmiller, a seasoned investment mogul, warns that it would be foolish to ignore the possibility of a “really, really bad” scenario unfolding. Druckenmiller Cites Drop in Consumer Spending and Banking Industry Turmoil as Recession Indicators At the 2023 Sohn Investment Conference in San Francisco, Stanley Druckenmiller sounded the alarm on the U.S. economy. While others may be optimistic about a “soft landing,” the seasoned hedge fund manager is bracing for impact, predicting a “hard landing” instead. Image source: “ There Goes The US Consumer ” highlighting the drop in consumer spending – Zerohedge May 14, 2023. Druckenmiller, who has enjoyed 30 years of success in the hedge fund industry, cited the sharp drop in consumer spending and the recent banking industry turmoil as key factors behind his forecast. Druckenmiller’s warnings about the U.S. economy are echoed by other notable figures in the financial world. Image source: “ There Goes The US Consumer ” highlighting the drop in consumer spending – Zerohedge May 14, 2023. Other famed investors, including Barry Sternlicht , David Rosenberg , and Jeffrey Gundlach , have also expressed concerns about a “hard landing” in the United States. At the Sohn conference, Druckenmiller elaborated on his prediction, citing rising unemployment, a 20% drop in business profits, and a surge in bankruptcies as key indicators of a recession. However, he was quick to clarify that he doesn’t anticipate a crisis worse than the 2008 financial meltdown. Druckenmiller said: I am not predicting something worse than 2008. It’s just naive not to be open-minded to something really, really bad happening. Druckenmiller Remains Optimistic About Post-Recession Opportunities While some experts, such as Goldman Sachs Global Investment Research and Wendy Edelberg of The Hamilton Project, are predicting a “soft landing” for the U.S. economy, Druckenmiller has an entirely different outlook. Druckenmiller is bracing for a recession, but he’s also optimistic about the future. While Druckenmiller expects a “hard landing” in terms of the U.S. economy, the investor believes opportunities will present themselves amid and following the recession. In fact, he believes that there will be “unbelievable opportunities” in the coming years, particularly in the field of artificial intelligence (AI). Druckenmiller sees the post-recession landscape as a fertile ground for innovative technologies and cutting-edge solutions “present themselves.” Druckenmiller stated: AI is very, very real and could be every bit as impactful as the internet — AI could eventually spawn $100-billion [in] companies. At the Sohn Investment Conference, Stanley Druckenmiller didn’t mince words when it came to his opinion of the Federal Reserve’s current policy. Druckenmiller believes that the U.S. central bank has exhausted its resources in the fight against inflation and recession. “We basically wasted all our bullets,” he lamented. Tags in this story ai , Artificial Intelligence , Central Bank , consumer spending , credit card usage , Fed , Federal Reserve , financial experts , hard landing , hedge fund manager , looming recession , opportunities , post-recession , Recession , Sohn Investment Conference , Stanley Druckenmiller , US economy What do you think about Stanley Druckenmiller’s predictions for the U.S. economy? Do you agree with his assessment, or do you have a different outlook? Share your thoughts in the comments section below. Jamie Redman Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 7,000 articles for Bitcoin.com News about the disruptive protocols emerging today. 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