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Morgan Stanley Chairman and Chief Executive James Gorman speaks during the Institute of International Finance Annual Meeting in Washington, October 10, 2014.Joshua Roberts | Reuters

The odds of a recession may be climbing as the Federal Reserve wrangles with inflation, but it's unlikely to be a deep one, according to Morgan Stanley CEO James Gorman.

"We're unlikely at this stage to go into a deep or long recession," Gorman said Monday at a financial conference held by his New York-based bank. "It's possible we go into recession, obviously, probably 50-50 odds now," he said.

Bank executives have raised alarms about the economy recently as the Fed raises rates and reverses quantitative easing programs. Rival CEO Jamie Dimon said he predicted a "hurricane" ahead due to central banks and the Ukraine conflict.

But Gorman expressed confidence that the Fed would eventually be able to bring inflation down from its multi-decade highs.

"I don't think we're falling into some massive hole over the next few years, I think eventually the Fed will get hold of inflation," he said. "You know that it's going to be bumpy; people's 401(k) plans are going to be down this year."

This story is developing. Please check back for updates.


News Source: CNBC

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