BUDAPEST — Hungarian-born billionaire investor George Soros said he expects the U.S. economy to make a "fairly good recovery" next year.
"We'll see a rather steep decline in the fourth quarter and probably a fairly good recovery next year," said Soros, in Budapest to announce his $250-million endowment to Central European University.
Soros said he approved of the U.S. Federal Reserve's interest rate cuts and the government's fiscal package to spur the economy, though he added that some tax cuts threaten to drive up long-term interest rates and put the budget into deficit.
The tax cuts, "with the new stimulus plus the economic slowdown, may push the balance into deficit in later years," he said. "That is having an effect on long-term interest rates and that threatens the recovery. Some of the tax cuts should be repealed."