Riyadh— At a panel of financial CEOs in Riyadh on Tuesday, Morgan Stanley CEO Ted Pick stated that the era of easy money and zero interest rates is well behind us.
“That period of financial repression, zero interest rates, and zero inflation is over”. Interest rates will rise, and they will face challenges globally.
And the end of ‘the end of history’ — geopolitics are back and will be part of the challenge for decades to come,” Pick stated, alluding to Francis Fukuyama’s well-known book, “The End of History and the Last Man,” published in 1992. This book made the case that conflicts between nations and ideologies were over with the end of cold war.
Easy monetary policy and repressed rates have been relegated to the past since 2022, when the Federal Reserve raised its benchmark rate by almost 500 basis points over 18 months after cutting rates to almost zero to combat the Covid-19 pandemic.
Source (CNBC)
