According to CEO Morgan Stanley, the United States has a 50% chance of falling into recession

James Korman, chief executive of Morgan Stanley, on Monday said he believes the U.S. economy has about a 50% chance of entering a recession.As part of your speech for a conference organized by your company.

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

CEO of Morgan Stanley He spoke against the backdrop of a relentless fall in markets, when central banks were expected to struggle Serious high inflation. The economic present warns some experts. However, Gorman is optimistic The central bank hopes it can finally reduce inflation.

“I do not think we will fall into a big hole in the next few years, I think the central bank will eventually bring inflation under control.“, He said.

Gorman also criticized the central bank for waiting too long to raise rates, leaving them less likely to maneuver when the recession begins. In addition, he said, last August or September, when it became clear that inflation would be higher than expected, he began discussing the risk of a recession with his internal groups.

“We are in a kind of ‘brave new world’ (Note on Altus Huxley’s novel Brave New World) Now, I do not think there is anyone in this room who can accurately predict where inflation will be after a year.Gorman said.

Last Thursday, Secretary of the Treasury Janet Yellen has assured that the recession in the United States is unlikely but dangerous..

“Risk of recession”Said Joe Biden, head of finance and economics, at an event organized by the newspaper New York TimesFears are growing due to the monetary policy measures needed to control inflation.

But “is it possible?” When asked, Yellen replied: “I do not think so.”

Fears are mounting as the world’s largest economy plunges into recession The Federal Reserve, the US Federal Reserve (Fed), is forcibly tightening monetary conditions in order to reduce demand and inflation..

However, “no element indicates a recession is coming,” Yellen estimates, adding that a “soft landing” is possible, meaning that the economy will slow down without inflation or weigh in heavily on employment.

On the other hand, after the strong decline they experienced last weekend, The Bitcoin and major cryptocurrencies continue to trade lower Following the negative trend that started some time ago, DeFi calls or decentralized funds are also affected.

(With Reuters information)

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