DAVOS, Switzerland (AFX) - George Soros, chairman of the Soros F Management group said he expects the Federal Open Markets Committee (FOMC) to overshoot rather than undershoot as it cuts interest rates.
Speaking to reporters at the World Economic Forum here, Sorus said that he thinks that the FOMC is "more likely to overshoot than undershoot" as it tries to manage the slowdown in its domestic economy.
Soros believes that the global economy is also in recession. He expressed concern that the global system never properly recovered from the financial crises of 1997 and 1999.
"The banking systems in Korea, Thailand, Indonesia, not to mention Japan are in trouble," he said.
Soros believes that cyclical forces are weaker in Europe than in the U.S. because the public is less involved in the stock market. Europe will suffer less of a downturn in economic activity than the U.S., but maybe more than the authorities are trying to convince the public, he said.