Wall Street expert Jeremy Grantham predicts that rising interest rates will lead to a recession, contradicting the Federal Reserve’s optimistic outlook. He remarked that the Fed has a history of missing recession signals, especially after major market bubbles. Grantham believes the tech stock decline’s deflationary effects will combine with the impact of higher rates on sectors like real estate, causing a prolonged economic downturn and stock price drop. He anticipates the S&P 500 to drop significantly by year-end and sees a future of consistently higher inflation and interest rates. In essence, low rates boost asset prices, while high rates depress them.