Hedge Fund Manager and investment strategist, George Soros is known internationally for his expertise in global markets on bloomberg.com. He recently predicted in January 2016 to Bloomberg that the global economy is headed towards financial disaster if China doesn’t develop a new growth model. During the beginning of the month, China was responsible for effects on international currency, the stock market, and commodity market. The reason, the country’s yuan decreased in value the first week of the month. Soros later in February spoke out against the Federal Reserves raising rates in the United States during December 2015.
According to Yahoo! Finance, Soros and other hedge fund managers believe the Federal Reserves on twitter.com increase the rate to hastily in spite of a slowing economy. They said it was too late and the rate increase should have happened in 2014. If the rate is increased in 2016, Soros said he would be astonished. CEO, Esther George of the Federal Reserve in Kansas City admitted the rate was raised to late, based on an online article published by Market Realist. She also said that “growth of the economy, stable job growth, and moderate high rates of inflation in the United States is the reason the U.S. economy may permit further rate increases.″
In February, Esther George said the economy is presently in good position. She didn’t reveal when the next rate increase is likely to happen. William Dubley, New York City Federal Reserve said the first week of February, that the financial conditions in the United States are extremely constricted and an increase in the rate is a “weakening outlook for global economy (VEU) that would need to be taken into account.″ The Federal Reserve was criticized in the Financial Crisis Inquiry Report on January 2011 for neglecting to react to the mortgage crisis during the Great Recession period. The agency should have set judicious lending criterions for obtaining mortgages.
George Soros knows the trends of the economy and shares his experience and predictions to investors and interested individuals. Since the mid-1960′s, he has watched the economy fluctuate and global market crisis. If the Federal Reserves cut the rate in 2016, Soros said it would be to correct the rate increase in December 2015 when the economy was slowing down. For as a prediction of the next move of the Federal Reserve, Stanley Fisher, Vice-Chairman said it was difficult to predict.
Rate increases and decreases are actions by the U.S. Federal Government and have an essential role in the U.S. economy. When taxes are adjusted it will either slow down the growth rate in the economy or increase it. George Soros has knowledge and discernment of international economics. He successfully earned a degree from London School of Economics and manages over $20 billion in hedge funds.