At a conference on Monday, Morgan Stanley CEO James Gorman said he believes that there is a 50% chance the United States is entering a recession.
“It’s possible we go into recession, obviously, probably 50-50 odds now,” Gorman said at a conference hosted by Morgan Stanley. “I don’t think we’re falling into some massive hole over the next few years, I think eventually the Fed will get hold of inflation. You know it’s going to be bumpy; people’s 401(k) plans are going to be down this year.”
The CEO followed these comments by saying that he did not believe this recession would be either “deep or long.”
The prediction comes as the United States Inflation Rate reaches 8.6 percent, the highest in over four decades.
In spite of this prediction, U.S. Treasury Secretary Janet Yellen continues to deny America’s possible entry into a recession: “I don’t believe we’re going to have a recession,” she said on June 9.
Others disagree, such as BlackRock President Rob Kapito, who believes that an “entitled generation” is about to learn what it means to deal with shortages, saying, “For the first time, this generation is going to go into a store and not be able to get what they want.”
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