Morgan Stanley CEO James Gorman Sees 50% Recession Risk

Morgan Stanley Chief Executive Officer James Gorman said he sees the risk of a U.S. recession at about 50% even as he’s more focused on non-financial perils including the possibility of cyber attacks.

“It was inevitable this inflation was not transitory, it was inevitable the Fed would have to move faster than they were projecting,” he said Monday at the Morgan Stanley U.S. Financials, Payments and CRE conference. “There was a legitimate recession risk. I used to think it was about 30%. It’s probably more like 50% now — it’s not 100%. It behooves you to be a little cautious.”