Despite nearly two years of recession predictions by Wall Street’s top minds, billionaire investors, and former Federal Reserve officials, the U.S. has yet to suffer an economic downturn. And with a strong labor market and inflation fading in the face of aggressive interest rate hikes, some experts have turned bullish, arguing that Fed Chairman Jerome Powell can engineer a soft landing for the economy. Even the Fed’s staff economists revealed in July that they are no longer forecasting the “mild recession” they had first predicted in March.
But Jeremy Grantham, cofounder of investment firm Grantham, Mayo, Van Otterloo & Co. (GMO), believes investors should ignore his more optimistic peers and the central bank’s staff.
