Famed economist David Rosenberg says the Fed's research team laughed at him in late 2007 when he warned them a recession was coming. He says the central bank is now on the verge of sparking another downturn.

Famed economist David Rosenberg says the Fed’s research team laughed at him in late 2007 when he warned them a recession was coming. He says the central bank is now on the verge of sparking another downturn.

July 31, 2023

in Stocks

Reading Time: 3 mins read

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Economist David Rosenberg told Insider that Fed employees laughed at his recession call in 2007.
Months later, the Great Recession arrived and the S&P 500 fell more than 50%.
Rosenberg says the US economy is now on the brink of another downturn.

On October 9, 2007, shortly before the global economy plunged into recession, David Rosenberg delivered a presentation to economists and members of the research team at the Federal Reserve detailing why a downturn was coming.

Rosenberg, then the chief North American economist at Merrill Lynch, recalled saying that all the classic signals like the Treasury yield curve and The Conference Board’s Leading Economic Index pointed to a recession. Plus, a bubble in the housing market was going to burst.