Morgan Stanley Co-President Edward Pick said on Tuesday that the crash of Silicon Valley Bank comes as a result of global tighter financial conditions.
"This is part of the process of the knob being turned to tighten financial conditions to make sure that we are on our way to normalising a higher interest rate world. But there might well be surprises, there might well be reactions," Pick said during the Morgan Stanley conference.
"This week, in some respects, is indicative of what happens when you are in the throes of that battle between fire and ice," Pick sad, noting that the upcoming consumer price index (CPI) reading, coupled with the collapse of banks in the country, will determine whether Federal Reserve will decide to slow the pace of interest rate hikes.
