Morgan Stanley CEO Says Inflation Has Peaked and China Has Performed a Major Pivot CryptoBlog

Morgan Stanley CEO James Gorman said two changes have happened recently that “really matter” for the economy. The executive explained that inflation had clearly peaked and China had made a “major pivot” economically.

Morgan Stanley CEO on the US economy and inflation

Global investment bank Morgan Stanley Chairman and CEO James Gorman discussed the U.S. economy and China’s relationship with the United States in an interview with CNBC on Thursday in Davos, Switzerland.

“Two things have changed recently that really matter,” he began, noting that the first relates to inflation while the second relates to China’s recent economic pivot.

“Inflation numbers are better,” the Morgan Stanley chief said, noting:

Clearly, inflation has peaked. It is no longer a question. That’s a fact.

He added that the question is whether the Federal Reserve can hit its 2% inflation target and “how hard are they going to try to hit 2% from 2019.” stabilizing around 3%, 4%.”

Regarding the Fed’s interest rate hike, Gorman pointed out, “We were on a 75 basis point trajectory. Then we quickly moved to 50.” At the next meeting of the Federal Open Market Committee (FOMC) , he expects the Fed to hike rates by 25 basis points, saying, “I could see them doing 25, followed by 25, followed by a break. I mean, it’s not implausible.

“China has made a major, major pivot”

Gorman explained that another significant change that has happened recently has to do with China. He described:

The second thing that happened was that China made a major pivot. Now the focus was on reopening which was obviously critical.

“The recent economic pivot, the thawing of relations with the United States, the meeting … with the Deputy Prime Minister and Secretary Yellen, it is a big problem,” continued the CEO of Morgan Stanley.

U.S. Treasury Secretary Janet Yellen met with Chinese Vice Premier Liu He on Wednesday “as part of efforts to deepen communication and work together to address global challenges,” the Treasury said last week. In November last year, President Joe Biden and President Xi Jinping also met in Bali and “agreed to empower key senior officials to engage on these issues,” the Treasury added.

“According to President Xi’s common prosperity mantra, there are two ways to achieve this,” Gorman detailed, concluding:

One is to redistribute existing prosperity, so that everyone gets a slice of the pie. The other is to make the cake bigger so that everyone gets a piece of the cake. They pivoted, I think, from first to second. This is good news for global growth.

Keywords in this story

Federal Reserve rate hike, inflation peaked, interest rates, james gorman, james gorman china, james gorman inflation, james gorman morgan stanley, morgan stanley, morgan stanley ceo, morgan stanley china, morgan stanley fed rate hike, Morgan Stanley inflation, ms

Do you agree with Morgan Stanley CEO James Gorman on inflation and pivoting China? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

Image credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Leave a Comment

Your email address will not be published. Required fields are marked *