One of the world’s most well-regarded traders has asserted the US is “guaranteed” to be hit with a recession in 2024.

Jeremy Grantham, the co-founder of funding big Grantham Mayo Van Otterlloo (GMO), asserts an economic downturn is extra more likely to happen regardless of many traders and monetary organizations suggesting in any other case.

Citing the Federal Reserve’s latest declare a recession can be prevented, he claims this prognosis is “almost guaranteed to be wrong”.

Mr Grantham reportedly manages $65billion in property and has a stellar observe file of predicting market crashes.

He precisely predicted the 2001 dot com crash and the 2008 Global Financial Crisis earlier than they happened.

In an interview with Bloomberg earlier this month, Mr Grantham shared his ideas on the state of the US economic system.

According to the legendary investor, the US “will have a recession perhaps deep into the next year and an accompanying decline in stock prices”.

The investing skilled defined: “The Fed’s record on these things is wonderful. It’s almost guaranteed to be wrong.

“[The Federal Reserve] has never called a recession, particularly not ones following the great bubbles.”

Earlier this month, the central financial institution revised its projections about its earlier forecast of a recession in direction of the tip of the yr.

However, the Fed has reiterated its dedication to additional rate of interest rises in an try to mitigate the harm of inflation on the economic system.

Mr Grantham contends that the Federal Reserve won't settle for duty for the potential financial downturn.

The investor added: “They took credit for the beneficial effect of higher asset prices on the economy.

“But they have never claimed credit for the deflationary effect of asset prices breaking - and they always do.”

Among the opposite main traders who agree with Mr Grantham’s viewpoint are Peter Schiff, Robert Kiyosaki and Danielle DiMartino Booth.

While talking to Bloomberg, the investor legend claimed that inflation would by no means attain the Fed’s two % goal.