Morgan Stanley CEO Says Fed Should Start Hiking Despite War
- Gorman says Fed will need to raise rates ‘very methodically’
- Wall Street CEO says he met with Powell only recently
This article is for subscribers only.
Morgan Stanley Chief Executive Officer James Gorman said the Federal Reserve should still commence a series of rate hikes despite the geopolitical and economic risks sparked by the war in Ukraine.
The Fed will likely need to make “inexorable” rate increases in order to contain surging price pressures in the wake of Russia’s invasion of Ukraine, the Australian national said in Sydney on Tuesday. While Gorman expects that Chair Jerome Powell will make four 25-point hikes this year, the Wall Street CEO warned that he will need to tread carefully.