AI Summary
According to Odaily, Morgan Stanley strategists have highlighted the possibility of a 'jobless productivity boom' in the United States, which could suppress inflation and pave the way for further interest rate cuts by the Federal Reserve. Data from the U.S. Department of Labor indicates that the hourly output of all non-farm workers increased by 3.3% year-on-year in the second quarter, a significant improvement from the 1.8% decline in the previous quarter. Investors are anticipating a more aggressive pace of rate cuts by the Federal Reserve next year compared to official forecasts. The CME FedWatch tool reveals that while Federal Reserve officials expect only one rate cut in 2026, investors believe there is a 72% chance of a rate decrease by the end of the year.