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Soros Predicts US Recession

Billionaire investor says the U.S. economy could fall into recession in 2007.

He spoke in Singapore on Monday, and said the U.S. central bank could spark the downturn by raising interest rates too high, crimping the U.S. housing market. High U.S. housing prices are a key reason that rising energy prices did not derail economic growth last year.

The U.S. Federal Reserve has been boosting interest rates steadily in a bid to fend off inflation, but Soros expects that campaign to end after two more quarter-point rate hikes (at 4.75 percent).

The U.S. economy is the world's largest, and Soros says a U.S. recession could slow global economic growth.

He also said future global growth could come from Asia, and urged Asian governments to encourage domestic demand to reduce their dependence on exports.

Some information for this report provided by Bloomberg and Reuters.