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Morgan Stanley Firmly Convinced: The Fed Will Not Raise Rates This Year, but It Sets Off Two Major Rate-Hike Alarms
On June 27, Morgan Stanley kept its view that the Federal Reserve will hold interest rates unchanged through the end of the year. However, the firm warned that if the unemployment rate falls below 4% or inflation remains persistently high, it could force the Fed to reconsider whether to raise rates. In a report sent to clients, Michael Gapen, Morgan Stanley’s chief U.S. economist, said that since the June Federal Open Market Committee meeting, the data received has made his baseline forecast of no rate hikes “slightly more reassuring.” He cited reasons including a drop in oil prices following the Iran-U.S. memorandum of understanding, as well as expectations that the pass-through effects of tariffs are about to end. ✨ $BNB #bStocks正式上线