Investor Michael Burry of “The Big Short” fame has issued a gloomy warning for the U.S. economy: A recession and another inflation spike are almost certainly in the cards in 2023.
The Scion Asset Management chief – who rose to prominence after he successfully predicted the 2008 housing collapse – said on Twitter that while inflation has peaked, it will likely surge again as part of the same cycle once the economy slows and the Fed moves to cut interest rates.
“Inflation peaked. But it is not the last peak of this cycle,” Burry said in a tweet on Sunday evening. “We are likely to see the CPI lower, possibly negative in 2H 2023, and the US in recession by any definition. Fed will cut and government will stimulate. And we will have another inflation spike. It’s not hard.”