Jeremy Grantham warns of impending recession and criticizes the Federal Reserve's optimistic outlook

Jeremy Grantham, co-founder of GMO, warns that a US recession is still on the way and expresses little confidence in the Federal Reserve's ability to steer the economy towards a soft landing. Grantham believes that higher interest rates will cause pain in financial markets and that the central bank's track record in predicting recessions is "almost guaranteed to be wrong." He predicts that the repercussions of higher rates will lead to a stock market decline and a recession that could last into 2024. Grantham also suggests that reaching the Federal Reserve's goal of 2% inflation may be difficult, as he expects a period of moderately higher inflation and interest rates.