{"id":1116138,"date":"2021-12-13T21:59:04","date_gmt":"2021-12-14T02:59:04","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1116138"},"modified":"2021-12-13T21:59:07","modified_gmt":"2021-12-14T02:59:07","slug":"as-inflation-continues-morgan-stanley-ceo-says-federal-reserve-needs-to-raise-interest-rates","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/as-inflation-continues-morgan-stanley-ceo-says-federal-reserve-needs-to-raise-interest-rates\/","title":{"rendered":"As Inflation Continues, Morgan Stanley CEO Says Federal Reserve Needs To Raise Interest Rates"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fas-inflation-continues-morgan-stanley-ceo-says-federal-reserve-needs-to-raise-interest-rates%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1116138&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>As inflation continues to rise, Morgan Stanley CEO James Gorman advised the Federal Reserve to hike interest rates.<\/p>\n<p>The Bureau of Labor Statistics <a href=\"https:\/\/www.dailywire.com\/news\/as-inflation-soars-americans-real-wages-decline\">announced<\/a> last week that inflation rose at a 6.8% pace last month \u2014 the largest year-over-year increase since June 1982. Households are grappling with significantly higher price levels in staples such as gasoline, food, vehicles, electricity, and apparel.<\/p>\n<p>As the Federal Reserve begins deliberations on potentially tapering monetary stimulus, Gorman believes that a rate hike would be prudent.<\/p>\n<p>\u201cWe are heading toward a rising interest rate environment,\u201d Gorman said during an interview with <a href=\"https:\/\/www.cnbc.com\/2021\/12\/13\/morgan-stanley-ceo-gorman-calls-for-the-fed-to-raise-interest-rates-soon.html\">CNBC<\/a>. \u201cI felt the Federal Reserve would be better off storing away some of the rate increases, so when the inevitable downturn comes, you\u2019ve got some ammunition to fight with.\u201d<\/p>\n<p>In order to establish a normal interest rate regime, Gorman said that the central bank will need to carry out 10 rate hikes. \u201cIf I were the Fed, I would start moving earlier rather than later. Store away some ammunition and accept the reality,\u201d he continued.<\/p>\n<p>\u201cI don\u2019t think it derails the economy,\u201d Gorman added. \u201cThis is what you need, you need balance in the economy.\u201d<\/p>\n<p>Aligning with Gorman\u2019s comments, the Organization for Economic Cooperation and Development recently <a href=\"https:\/\/www.dailywire.com\/news\/oecd-forced-to-slash-economic-growth-forecasts-due-to-high-inflation\">noted<\/a> that the global recovery from COVID-19 and the lockdown-induced recession is \u201closing momentum\u201d due to high price levels.<\/p>\n<p>\u201cAlongside cost pressures from manufacturing supply bottlenecks and food price increases, imbalances in the energy market are a key factor driving up inflation in all economies,\u201d said the group. \u201cGas prices have risen sharply, notably in Europe, and risks are high, with storage levels around 28% lower than they would normally be at this time of the year. Rising food and energy costs are inevitably hitting low-income households the hardest.\u201d<\/p>\n<p>\u201cInflationary pressures are proving stronger and more persistent than expected a few months ago. Consumer price inflation in the OECD is now projected to start fading in 2022, before moderating as key bottlenecks ease, capacity expands, more people return to the labour force and demand rebalances. The Outlook underlines the risk that continued supply disruptions, perhaps associated with further waves of COVID-19 infections, may result in longer and higher inflationary pressure.\u201d<\/p>\n<p>On Monday, Lawrence Summers \u2014 who worked as Treasury Secretary under the Clinton administration and National Economic Council director under the Obama administration \u2014 likewise <a href=\"https:\/\/www.dailywire.com\/news\/top-obama-economist-debunks-biden-talking-point-about-root-causes-of-inflation\">called<\/a> it a \u201clong shot\u201d to believe that inflation will soon return to \u201clevels anywhere near\u201d the Federal Reserve\u2019s targets.<\/p>\n<p>\u201cGiven housing prices and tightening labor markets, there is no compelling reason to expect major deceleration in inflation,\u201d he said. \u201cBut, even if inflation subsided to .2 percent a month, the annualized inflation rate would be 6.5% in March 5.1% in June and 4.0% before the election in September.\u201d<\/p>\n<p>\u201cMy guess is barring a major recessionary or financial shock next fall, headline inflation will round to 5 percent,\u201d Summers continued. \u201cWe are beyond where the Vietnam inflation took us but still have plenty of time to stop a late 1970s situation from developing, if we have the will.\u201d<\/p>\n<p>The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a <a href=\"https:\/\/www.dailywire.com\/subscribe\">member<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As inflation continues to rise, Morgan Stanley CEO James Gorman advised the Federal Reserve to hike interest rates.The Bureau of Labor Statistics announced last week that inflation rose at a 6.8% pace last month \u2014 the largest year-over-year increase since June 1982. Households are grappling with significantly higher price levels in staples such as gasoline, food, vehicles, electricity, and apparel.As the Federal Reserve begins deliberations on potentially tapering monetary stimulus, Gorman believes that a rate hike would be prudent.\u201cWe are heading toward a rising interest rate environment,\u201d Gorman said during an interview with CNBC. \u201cI felt the Federal Reserve would be better off storing away some of the rate increases, so when the inevitable downturn comes, you\u2019ve got some ammunition to fight with.\u201dIn order to establish a normal interest rate regime, Gorman said that the central bank will need to carry out 10 rate hikes. \u201cIf I were the Fed, I would start moving earlier rather than later. Store away some ammunition and accept the reality,\u201d he continued.\u201cI don\u2019t think it derails the economy,\u201d Gorman added. \u201cThis is what you need, you need balance in the economy.\u201dAligning with Gorman\u2019s comments, the Organization for Economic Cooperation and Development recently noted that the global recovery from COVID-19 and the lockdown-induced recession is \u201closing momentum\u201d due to high price levels.\u201cAlongside cost pressures from manufacturing supply bottlenecks and food price increases, imbalances in the energy market are a key factor driving up inflation in all economies,\u201d said the group. \u201cGas prices have risen sharply, notably in Europe, and risks are high, with storage levels around 28% lower than they would normally be at this time of the year. Rising food and energy costs are inevitably hitting low-income households the hardest.\u201d\u201cInflationary pressures are proving stronger and more persistent than expected a few months ago. Consumer price inflation in the OECD is now projected to start fading in 2022, before moderating as key bottlenecks ease, capacity expands, more people return to the labour force and demand rebalances. The Outlook underlines the risk that continued supply disruptions, perhaps associated with further waves of COVID-19 infections, may result in longer and higher inflationary pressure.\u201dOn Monday, Lawrence Summers \u2014 who worked as Treasury Secretary under the Clinton administration and National Economic Council director under the Obama administration \u2014 likewise called it a \u201clong shot\u201d to believe that inflation will soon return to \u201clevels anywhere near\u201d the Federal Reserve\u2019s targets.\u201cGiven housing prices and tightening labor markets, there is no compelling reason to expect major deceleration in inflation,\u201d he said. \u201cBut, even if inflation subsided to .2 percent a month, the annualized inflation rate would be 6.5% in March 5.1% in June and 4.0% before the election in September.\u201d\u201cMy guess is barring a major recessionary or financial shock next fall, headline inflation will round to 5 percent,\u201d Summers continued. \u201cWe are beyond where the Vietnam inflation took us but still have plenty of time to stop a late 1970s situation from developing, if we have the will.\u201dThe Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a member.<\/p>\n","protected":false},"author":99,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1116138","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1116138","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1116138"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1116138\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1116138"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1116138"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1116138"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}