According to James Gorman, CEO of Morgan Stanley, two recent changes "actually matter" for the economy. The CEO noted that China has taken a "huge, significant shift" economically and that inflation has unmistakably reached its peak.
In an interview with CNBC on Thursday in Davos, Switzerland, James Gorman, the chairman and CEO of the global investment firm Morgan Stanley, talked about the American economy and it's relationship with China.
“The inflation numbers are better, clearly, inflation peaked. That’s no longer a question. It’s a fact.”
The Federal Reserve's goal of 2% inflation is still up for grabs, he continued, adding that “how hard will they try to get to 2% vs. stabilizing around 3%, 4%.”
“The second thing that happened is China has made a major, major pivot. Now the focus was on the reopening which was obviously critical. The recent pivot economically, the relationship thawing with the U.S., the meeting … with the vice premier and Secretary Yellen — this is a big deal.”
Vice Premier Liu He of China and U.S. Treasury Secretary Janet Yellen met on Wednesday “as part of efforts to deepen communication and work together to address global challenges,” the Treasury explained last week. In November last year, President Joe Biden and President Xi Jinping also met in Bali and “agreed to empower key senior officials to engage in these issues,” the Treasury further noted.
