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Foreign exchange mt4 MT5 construction, market grasp: gold price is optimistic

发布时间：2022-08-25 浏览：116

On June 14, James Gorman, CEO of Morgan Stanley, said that with the struggle between the Federal Reserve and inflation, the possibility of economic recession may be increasing, but it is unlikely to be a serious recession.

Gorman said at the financial conference held by his bank based in New York on the same day, "it is obvious that we may enter a recession. Now the probability is 50% to 50% This is 30% higher than his earlier prediction. He also said, "at this stage, we are unlikely to fall into a deep or long-term recession."

Gorman's remarks came at a time when the market was in a free fall state and the market expected central banks to actively fight inflation. As the Federal Reserve raises interest rates and cancels its quantitative easing program, bank executives recently issued a warning about the economic situation. Dimon, the CEO of his competitor, said he expected a "hurricane" in the future due to the conflict between central banks and Ukraine.

But Gorman said he believed the Fed would eventually be able to pull inflation down from decades high.

He said, "I don't think we will be in some huge dilemma in the next few years. I think the Federal Reserve will eventually control inflation.".

He said that although the market has been collapsing, he is gratified that economic fundamentals, including consumer and corporate balance sheets, are better than the market shows.

However, Gorman said that the Fed raised interest rates for too long, and once the economy began to decline, its operating space would become smaller. He said that in August or September last year, when the persistence of inflation was significantly higher than expected, he began to discuss the risk of economic recession with the internal Committee.

He added: "we are in a 'beautiful new world' now, and I don't think anyone in this room can accurately predict the inflation level one year later."

From the above news, we can see that the possibility of the U.S. economy falling into recession is increased, which may boost the gold price, but it is unlikely to fall into a serious recession, so the space to boost the gold price may be limited.