Morgan Stanley CEO declares the end of the era of zero interest rates and inflation.

• According to Morgan Stanley CEO Ted Pick, who spoke at a panel of finance CEOs in Riyadh on Tuesday, the days of easy money and zero interest rates are now a thing of the past.
• "The era of zero interest rates and zero inflation has ended, according to Pick," said.
• In September, the Fed reduced its benchmark rate by 50 basis points for the first time since March 2020.

Morgan Stanley CEO Ted Pick stated on Tuesday during a panel of finance CEOs in Riyadh that the era of effortless money and no-interest rates has ended.

The era of financial repression, characterized by zero interest rates and zero inflation, has ended. Interest rates will rise and be challenged globally. Additionally, the end of the idea that geopolitics are irrelevant, as argued in Francis Fukuyama's 1992 book "The End of History and the Last Man," is over, and geopolitical challenges will persist for decades to come.

Since 2022, the Federal Reserve has been gradually increasing its benchmark rate after lowering it to near zero to combat the Covid-19 pandemic, resulting in a rise of around 500 basis points over 18 months.

During the period when Covid brought about a sugar high and low interest rates, small companies were able to go public with minimal business plans. However, this was followed by a tough funk that lasted for 18 months, during which almost nothing was happening, according to Pick.

Being a public company is tougher now, he said at a panel moderated by CNBC's Sara Eisen at the Future Investment Initiative in Saudi Arabia, as it feels more normalized.

In September, the Fed reduced its benchmark rate by 50 basis points, marking the first reduction since March 2020 and indicating a shift in its approach to managing the U.S. economy and forecasting inflation.

Strategists at J.P. Morgan and Fitch Ratings anticipate two more interest rate cuts by the end of 2024, with reductions continuing into 2025.

Wall Street's top executives appear to differ, stating their belief in ongoing inflation.

During a previous session at FII on Tuesday, a group of CEOs, including those from Goldman Sachs, Carlyle, Morgan Stanley, Standard Chartered, and State Street, were asked to show their support for two additional rate cuts by the Fed this year. Not a single panelist raised their hand.