Jim Grant's prediction: Fed will move in the 'direction of ease'

"The Fed's next move will be in the direction of ease," according to contrarian investor Jim Grant.

Grant, the founder and editor of Grant's Interest Rate Observer, told CNBC's "Closing Bell" that "the industrial manufacturing economy is visibly entering or flirting with recession, the yield curve is flat and flattening, [and] inventories are building."

Grant's prediction came after the Federal Open Market Committee said on Wednesday that it would not raise short-term interest rates.

While the so-called dot plot of future rate projections indicated there was still is a greater likelihood of two hikes before the end of 2016, doubts have increased that that would be the case.