Morgan Stanley's chief strategist called the last 3 crashes — and he says the Fed's latest rate hike just raised the odds of recession

Morgan Stanley's chief US equity strategist said that the Fed's rate hike heightens the risk that the US will slip into recession.

The 75 basis point increase in rates won't provide an immediate payoff in central bank's efforts to tame inflation, which soared to a four-decade high of 8.6% in May

Our intermediate-term view isn't really changed by it. Wilson doesn't think this will solve the inflation problem overnight.

It raises the risk of a recession because you're raising rates faster. The Fed doesn't have a lot of options as they hike into a slowdown.

Two consecutive quarters of negative economic growth are considered to be a recession. Consumer spending is affected by rising interest rates.

The last three stock market crashes have earned Wilson a reputation. The market has underestimated the aggressiveness of the Fed.

He said that rates went up even faster than they anticipated.

Multiples and price-to- earnings ratios are indicators of growth pressures.

Rates have gone up and multiples have gone down. At the end of the year, the P/E was higher. There is a risk to growth.

The S&P 500 could fall as low as 3,400 points if the Fed manages a soft landing, according to the Morgan Stanley strategist. The US stock index ended the day at 3,793.

"We're very explicit about this 3,400, 3,500 level that's based on our valuation work, that assumes no recession but some degradation in earnings," he said.

The tech-laden Nasdaq 100 stock market is likely to slide in the near future.

He said that the Nasdaq was more extended on valuation at the start of the year. The technology sector has a higher risk of payback in demand than other industries.

Wilson is not the only Wall Street strategist who is worried about a US recession. According to economists at Wells Fargo, the US is about to go into a recession.

The Fed's updated economic forecasts suggest a recession is the only way to bring inflation under control, according to Principal Global investors.

Seema Shah said in a note that the Fed let go of its "immaculate disinflation" scenario, instead admitting that unemployment is likely to rise.

The rise in unemployment rate by the end of the century is suggestive of a recession.

Morgan Stanley's Mike Wilson predicts that the S&P 500 will fall by another 14 percent. When the bull returns, he recommends buying these 15 stocks.