Recession isn't happening as the US economy is the most dynamic it's been in history

Don't expect a recession to hit anytime soon, as the US economy appears to be the most dynamic it's ever been, according to "The Big Short" investor Steve Eisman.

The famed investor, known for predicting the 2008 housing crash, believes the US economy is in a strong position despite warnings from some forecasters about a potential recession. Eisman points to key investment themes driving the market as evidence of the economy's strength, which typically doesn’t occur when the economy is struggling.

"In bad times, people focus on better quality and balance sheets, and in good times they focus on stories, and we're in story-time," Eisman said in an interview with CNBC on Thursday.

Eisman highlighted Wall Street's ongoing enthusiasm for AI and bets on America's infrastructure boom. These areas have been significant drivers of the market in recent years. Mega-cap tech stocks like Nvidia and Apple have recently reached record highs, while infrastructure stocks have also performed well, with the iShares US Infrastructure ETF rising 10% over the last year.

"All the economists who said that, because the Fed raised rates 500 basis points, it would cause a recession have been wrong, and we're just powering through," Eisman added. "I think the only conclusion you can reach is that the US economy is more dynamic than it's ever been in its history."

Starting in 2022, Fed officials raised interest rates by 525 basis points in just over a year, but high rates haven't caused an economic downturn. GDP growth has remained positive in recent quarters, and the job market is strong, with unemployment near its lowest level in decades.

Central bankers also seem poised to start reducing interest rates later this year, given the soft inflation data from the last two months. Markets see a 69% chance that the Fed could cut rates three times or more by the end of the year, according to the CME FedWatch tool, which would be bullish for stocks.

However, some forecasters continue to predict a recession, citing pockets of weakness in the job market and key sectors like manufacturing. The New York Fed sees a 52% chance the economy could enter a recession by May of next year.