Soros says sees recession in 2007

Reuters | January 9 2006

SINGAPORE (Reuters) - Billionaire investor George Soros said on Monday he thinks the U.S. Federal Reserve's monetary tightening could tip the economy into recession in 2007 and he expects a sharp dollar decline.

Soros said he expects the federal funds rate, now at 4.25 percent, to peak at 4.75 percent and that the Fed would try to achieve a soft landing for the economy.

Nevertheless, the Fed could overshoot, he told a seminar in Singapore.

"If housing continues to cool while rates are slowing then it could turn into a hard landing," Soros said.

"That's why I expect a recession to happen in 2007, not 2006."

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