Lates News

Morgan Stanley has changed its forecast for the next interest rate cut by the Federal Reserve from March to June, still expecting a total of 75 basis points cut to end rates at 3% by the end of this year. Morgan Stanley predicts that the Fed will cut rates by 25 basis points in June, September, and December. The team, led by Chief US Macro Strategist Oscar Munoz, stated that the expected easing policy is not due to a worsening economic situation, but rather as a result of inflation gradually returning to target levels and the normalization of monetary policy. Improvements in employment prospects should allow the Fed to shift its focus towards inflation. The institution also forecasts that US Treasury yields will continue to decline, with the 10-year yields expected to drop to 3.75% by the end of the year (previously expected to be 3.5%).