Morgan Stanley delays expectations of Fed rate cut due to inflation concerns until September.

On Thursday, Morgan Stanley followed Goldman Sachs and Barclays in delaying the expected time for the next interest rate cut by the Federal Reserve from June to September. Previously, the Federal Reserve had issued a warning about inflation risks against the backdrop of the Middle East conflict. Morgan Stanley currently expects rate cuts of 25 basis points in September and December, compared to their previous forecast of rate cuts in June and September. As expected, the Federal Reserve kept interest rates unchanged on Wednesday, with Fed Chairman Powell stating in a post-meeting press conference, "In the short term, rising energy prices will push up overall inflation, but it is still too early to judge the range and duration of its potential impact on the economy." The latest forecasts from Federal Reserve policymakers show that interest rates will only be lowered by 25 basis points by the end of this year. However, major Wall Street investment banks still expect two rate cuts. In a report, Morgan Stanley strategists pointed out, "The cautious stance of the Federal Reserve means that rate cuts will be delayed. The main risk we face is that the rate cuts may come too late, or may not happen at all. Conversely, if oil prices experience a second round of soaring, it could lead to a weakening of economic activity and the labor market, prompting rate cuts."