“We’re unlikely at this stage to go into a deep or long recession,” Gorman said Monday at a financial conference held by his New York-based bank. “It’s possible we go into recession, obviously, probably 50-50 odds now,” he said.
Bank executives have raised alarms about the economy recently as the Fed raises rates and reverses quantitative easing programs. Rival CEO Jamie Dimon said he predicted a “hurricane” ahead due to central banks and the Ukraine conflict.
But Gorman expressed confidence that the Fed would eventually be able to bring inflation down from its multi-decade highs.
“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,” he said. “You know that it’s going to be bumpy; people’s 401(k) plans are going to be down this year.”
This story is developing. Please check back for updates.