Billionaire investor says Fed rate hike is too late to stop U.S. recession in 2016

The Federal Reserve’s decision to raise interest rates for the first time in a decade has garnered a lot of response. The move by the central bank made many financial experts and pundits say that the economic recovery is getting better and the country is officially back on track.

Not quite, says one billionaire investor, who believes the United States will enter a recession next year and the rate hike was six months too late.

Sam Zell, chairman of apartment landlord Equity Residential, spoke with Bloomberg News and explained that the Fed has been too cautious for too long and that the central bank should have done this six to nine months ago. If it had then the markets would have already been well adjusted. Moreover, it would have given Fed Chair Janet Yellen “more room if a recession is on the way.”

He listed a plethora of domestic and international economic challenges, including a slowdown in global trade, an economic slowdown in China and a slowdown in multinational companies hiring workers.

“There is a high probability that we are looking at a recession in the next 12 months,” Zell told the business news network. “The strong dollar is having a tremendous impact on U.S. production and U.S. businesses.”

Many have been highlighting the fact that the U.S. could embark upon recession territory over the next year or two (SEE: Citi outlook says 65% chance of U.S. recession in 2016), several years following the major economic collapse.