Morgan Stanley CEO said there is a 50% chance the US will fall into a recession

File photo of James B. Gorman, CEO of Morgan Stanley (Reuters/Aaron B. Bernstein)

Morgan Stanley CEO James Gorman said Monday that he believes there is a 50% chance that the US economy will enter a recession.as part of your speech at a conference organized by your company.

Gorman noted that no one “can accurately predict where inflation will be a year from now.” However, if the United States falls into a recession, he said, The crisis is unlikely to be “deep or protracted”.

CEO of Morgan Stanley Occurs against the backdrop of free-falling markets, while central banks are expected to fight back Extremely high inflation. Some experts are foreshadowing the economic present. However, Gorman is confident and He thinks the Fed can eventually bring down inflation.

I don’t think we will fall into a big hole in the next few years, I think the Fed will eventually control inflation“, He said.

Gorman was also critical, noting that the Fed waited too long to raise rates, giving them less wiggle room should a recession start. In addition, he said he began discussing recession risks with his internal committees last August or September, when it became clear that inflation would be more steady than expected.

We’re in a kind of “Brave New World.” (A reference to Brave New World, an Aldous Huxley novel) Now, I don’t think there’s anyone in this room who can accurately predict where inflation will be a year from nowGorman said.

Wall Street worker (EFE / Justin Lane)
Wall Street worker (EFE / Justin Lane)

last Thursday, Treasury Secretary Janet Yellen stressed that a recession in the United States is unlikely but the risk exists.

‘There is a risk of stagnation’Chief Financial and Economic Officer Joe Biden said during an event organized by the newspaper The New York TimesMeanwhile, fears multiply because of the monetary policy measures needed to curb inflation.

But when I was asked “is this possible?” Yellen replied, “I don’t think so.”

Concerns are growing as the world’s largest economy plunges into recession at a time The Federal Reserve, the central bank of the United States (Fed), is aggressively tightening monetary conditions in order to curb demand and reduce inflation.

However, “there is no element to suggest a recession is coming,” Yellen estimated, arguing that a “soft landing” is possible, i.e. making inflation slow without causing the economy to stagnate or overburden employment.

On the other hand, after the strong meltdown they experienced over the past weekend, Bitcoin and major cryptocurrencies continue to decline After a negative trend that started some time ago, it is also affecting DeFi calls, or decentralized finance.

(With information from Reuters)

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