In a Bloomberg interview, the chief investment officer of the Soros Fund, Dawn Fitzpatrick was discussing the US economy and cryptocurrencies.
She said that the real reason the GDP number shrank is because of negative net imports. It means that America is importing more goods from abroad than it was sending outside. The reason behind such high imports is because of lower demand domestically in America from both consumers and corporations. Hence, she claimed that there was a ‘silver lining’ in the reading of that GDP number.
She further claimed that recession is inevitable and the real question should be “when?”
In the interview she claimed that Ethereum would soon overtake Bitcoin as climate change becomes a global subject. She was also very optimistic about blockchain technology and its various possible applications.
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…. the blockchain technology is going to have some great applications.
While referring to Fidelity’s announcement to allow bitcoin investments in 401(k) retirement accounts, she said that crypto has gone mainstream and that it is here to stay.
Fitzpatrick finally gave her views regarding the current state of high inflation. According to her, the Fed will move interest rates higher at a faster pace to control the soaring inflation as quickly as possible. However, net interest rates of inflation are still negative so the monetary policy is still ‘easy.’