Morgan Stanley's Gorman Says It's Hard To Argue For More Rate Increases; Rate Cuts Wont Happen This Year
Portfolio Pulse from Happy Mohamed
Morgan Stanley's CEO, Gorman, has stated that it's difficult to argue for more rate increases and he doesn't foresee any rate cuts happening this year.
July 18, 2023 | 2:58 pm
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NEUTRAL IMPACT
Morgan Stanley's CEO's comments on interest rates could impact the bank's future earnings, as higher rates typically benefit banks.
Banks typically benefit from higher interest rates as they can charge more for loans, increasing their net interest margin. However, Gorman's comments suggest he doesn't see this happening, which could impact Morgan Stanley's future earnings.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100
NEUTRAL IMPACT
Gorman's comments on interest rates could impact the broader market, as represented by SPY, as interest rates affect the cost of borrowing and thus corporate profits.
Interest rates affect the cost of borrowing and thus corporate profits. Gorman's comments suggest he doesn't see rates increasing, which could impact the broader market, as represented by SPY.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50