Extremely negative if the US govt shutdown goes on further, says Morgan Stanley CEO Gorman

James Gorman, CEO of Morgan Stanley, spoke to CNBC-TV18 about the prolonged US shutdown, which he believes is a 'straightforward problem that demands solution'.

“I personally feel it is extremely negative if this shutdown goes on much longer. Firstly, at a human level, you have got 800,000 families affected by this. This is not the way the US should be working and I truly hope the leadership of both sides come to some way of resolving what seems to be a relatively straightforward problem,” Gorman told CNBC-TV18 on the sidelines of the World Economic Forum in Davos.

“Everybody wants to get back to a market that reflects what is going on in the economy. The challenge is obviously the different opinions of what Fed policy should be and given the four rate increases last year, they are signalling around that will the Fed truly be data dependent including market data in determining what to do with market sentiment, market volatility, market liquidity, the temperature of the trading rooms around the street, these things matter. I think the Fed is digesting that and my expectation is we will have a much more modest rate increases in 2019,” he added.