The U.S. economy could slingshot higher if politicians reach a compromise on the country's fiscal problems, Greg Fleming, Morgan Stanley Wealth Management president, told CNBC's "Squawk Box" on Wednesday.
"I believe that both sides in the final analysis want a deal and the compromise is in the revenue side for the president, and potentially higher rates, which I think he's serious on, and real entitlement reform for the Republicans," Fleming said.
Fleming doesn't believe either side wants to go over the "fiscal cliff" of automatic tax increases and spending cuts that hit at the end of the year. "They do understand that not only would that present a problem in the near term as we went over the cliff at the end of the year, but we still then have the whole debt ceiling fight that would transpire shortly into the new year," he noted.