Sam Boughedda

On “Bloomberg Wealth” with David Rubenstein, Dawn Fitzpatrick, chief executive officer and chief investment officer at Soros Fund Management stated that she doesn’t worry about a possible recession in the immediate term despite recent market declines.

Fitzpatrick claims that Americans are “extraordinarily well” in their consumer health, which will help the U.S. economy withstand the Fed’s rate increases.

The interview will air on May 31st at 9 p.m. E.T.

When you examine that GDP figure, it is important to note the fact that net imports were negative. This means that we are importing lots of products from overseas. This is because there’s strong consumer and corporate demand. Fitzpatrick stated that there is a silver lining to the GDP reading.

Recession is inevitable, that is the bottom line. It is a matter of how soon. It’s a matter of when. She said that markets could be mistaken in the context of 2023, depending on what asset classes are being considered.

Fitzpatrick was asked if rising inflation is a major problem. “Rate increases will slow down the economy, and will impact inflation. But this economy has shock absorbers built in. Although I do not believe we can avoid a recession it will likely be more widespread than many people think.

Fitzpatrick, the family office head for George Soros, manages approximately $28 billion of funds.