A famed economist who called the 2008 recession warns the Fed is behind on rate cuts — and that a downturn is coming despite 'off the charts' investor sentiment

REUTERS/Lucas Jackson

• David Rosenberg warns of recession as labor-market revisions show 818,000 fewer jobs.
• The Federal Reserve's rate hikes were based on overestimated job numbers, Rosenberg says.
• Despite recession risks, stocks are elevated as investors anticipate future rate cuts.

Massive downward labor-market revisions are the latest sign that the US economy is heading toward a recession and the Federal Reserve is behind on interest rate cuts, according to the famed economist David Rosenberg.