Why 'The Big Short' investor Kyle Bass says the US might need to go through a recession

Reuters/Rick Wilking

• Investor Kyle Bass sees a recession as potentially needed to get the US economy back on solid footing.
• "We must reset our trade relationships with the rest of the world, we also must narrow our fiscal deficit," he told Bloomberg TV.
• But he doesn't except a major downturn from recent tariff policy.

A recession is a tough pill to swallow, but it might be just what the US economy needs, veteran investor Kyle Bass said.

Bass, who gained...