MercoPress. South Atlantic News Agency

Soros optimistic about recovery of the US economy in third quarter

The billionaire financier said that no more stimulus money is needed in the US

The United States economy has hit the bottom and the current quarter will see positive growth because of the government's stimulus spending, according to billionaire financier George Soros.

”I think it (the stimulus) has made a difference, the economy has actually bottomed and I think we are facing a positive quarter, and I think that is largely due to the stimulus“ Soros said in an interview with Reuters Television in New York.

The Obama administration is pumping 787 billion US dollars into the economy in a bid to turn around the deepest recession since the 1930s. The US economy shrank by 1% in the second quarter after tumbling 6.4% in the previous quarter, the biggest decline since 1982.

Soros who has become a financial reference for markets, said he did not believe the economy needed more stimulus money, despite calls for a second round of spending. In July, House of Representatives Majority Leader Steny Hoyer said the US should be open to more government spending if needed.

On Tuesday US President Barack Obama sounded a cautious note, saying the economy is ”not out of the woods“ despite signs lagging business investment was reviving. Last week the White House said there are no plans for a second stimulus package.

Back in June Soros said the United States faces a ”stop-go” economy because rising borrowing costs could generate major headwinds for the still-fragile economy.