Morgan Stanley CEO Shared The FED Interest Rate Forecast

Morgan Stanley CEO shared the Fed interest rate forecast. James Gorman expects the FED to raise interest rates.

Morgan Stanley CEO James Gorman stated that they expect the Federal Reserve to reduce its bond purchase program towards the end of this year and start increasing rates in early 2022. Gorman noted that the FED will proceed with whatever the figures show, and that this is only their own views, said, "My personal opinion is that interest rates will begin to increase early next year, not in 2023 as planned." Indicating that the FED continues to behave carefully, Gorman underlined that there will not be a long-term inflation pressure, but that the indicators point to an increase in inflation. Referring to the issue of inflation, Gorman said, "We see net price increases after years of zero inflation. This is starting to attract people's attention." Gorman said that he is confident in the economic recovery in the US, "Increasingly, people think inflation will be more structural and long-term. If this is the case, the FED will have to cut interest at some point."