Nov. 1 (Bloomberg) -- Morgan Stanley Chief Executive Officer James P. Gorman said he doesn’t see evidence of market bubbles developing.
Investors should applaud the day that the Federal Reserve begins reducing its efforts to hold down interest rates because that will mean the economy is healthier, Gorman said today during an interview on Bloomberg Television with Erik Schatzker.
Gorman, whose company runs the world’s largest brokerage, was responding to remarks by BlackRock Inc. CEO Laurence D. Fink, who said Oct. 29 that Federal Reserve policy is contributing to “bubble-like markets.” BlackRock is the world’s largest money manager.
“There’s a lot of robustness,” Gorman said. “The indicies have obviously rebounded tremendously, but from very low levels.” While the Fed’s program has created “a flood of money” in the debt markets, “it’s been necessary to get this country back in balance,” Gorman said.