Finance

Dennis Gartman warns a recession is coming and Trump's Fed pick will get blamed

Key Points
  • The economy will soon fall into a recession, Dennis Gartman, the Gartman Letter founder, told CNBC on Thursday.
  • "I think that there's likely to be a recession in the not-too-distant future and weaker stock prices over some time in the course of the next several years," he says.
Fed faces big changes in coming months. Here's what to expect
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Fed faces big changes in coming months. Here's what to expect

The economy will soon fall into a recession, Dennis Gartman, the Gartman Letter founder, told CNBC on Thursday.

President Donald Trump nominated Jerome Powell to run the Federal Reserve once current Chair Janet Yellen's term expires, but Gartman told CNBC's "Power Lunch" that if it were him, he would be "hesitant" to accept this position.

"I think that there's likely to be a recession in the not-too-distant future and weaker stock prices over some time in the course of the next several years. And poor Mr. Powell will be holding the ball at that time and be given the blame for it when he shouldn't be," he said.

He continued: "I think you're likely to see the overnight Fed's funds rate 100 to 150 basis points higher by the end of next year, rather than by a mere 75-100 basis points. I fear that will take the yield curve to an inversion. That's my greatest fear, and I think that that's going to be deleterious to share prices over time."

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