Asian-News.net is your go-to online destination for comprehensive coverage of major news across Asia. From politics and business to culture and technology, we bring you the latest updates, deep analyses, and critical insights from every corner of the continent. Featuring exclusive interviews, high-quality photos, and engaging videos, we keep you informed on the breaking news and significant events shaping Asia. Stay connected with us to get a 24/7 update on the most important stories and trends. Our daily updates ensure that you never miss a beat on the happenings in Asia's diverse nations. Whether it's a political shift in China, economic development in India, technological advancements in Japan, or cultural events in Southeast Asia, Asian-News.net has it covered. Dive into the world of Asian news with us and stay ahead in understanding this dynamic and vibrant region.

Contacts

  • Owner: SNOWLAND s.r.o.
  • Registration certificate 06691200
  • 16200, Na okraji 381/41, Veleslavín, 162 00 Praha 6
  • Czech Republic

Morgan Stanley CEO says the era of zero interest rates and inflation 'is over'

RIYADH, Saudi Arabia — The days of easy money and zero interest rates are firmly in the past, Morgan Stanley CEO Ted Pick said Tuesday, speaking at a panel of finance CEOs in Riyadh.

"The end of financial repression, of zero interest rates and zero inflation, that era is over. Interest rates will be higher, will be challenged around the world. And the end of 'the end of history' — geopolitics are back and will be part of the challenge for decades to come," Pick said, referencing the famous 1992 Francis Fukuyama book, "The End of History and the Last Man," which argued that conflicts between nations and ideologies were a thing of the past with the ending of the Cold War.

Repressed rates and easy monetary policy have been in the rearview mirror since 2022, when — after slashing rates to near zero to deal with the Covid-19 pandemic — the Federal Reserve cranked its benchmark rate up by around 500 basis points over the course of 18 months.

"We had the sugar high of Covid and zero rates, so small companies could go public without much of a business plan, and then we had this pretty tough funk for about 18 months when almost nothing was happening," Pick said of that period, talking about challenges for publicly listed companies.

"And now it feels like a more normalized cadence. It is tougher being a public company," he said at a panel moderated by CNBC's Sara Eisen at the Future Investment Initiative in Saudi Arabia.

The Fed cut its benchmark rate by 50 basis points in September — the first reduction since March 2020 — signaling a turning point in its management of the U.S. economy and in its outlook for inflation.

In late-September reports, strategists at JPMorgan and Fitch Ratings predicted two additional interest rate cuts by the

Read more on cnbc.com
DMCA