Morgan Stanley: Expects the Fed to Hold Rates Steady Next Week
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Morgan Stanley: Expects the Fed to Hold Rates Steady Next Week
Morgan Stanley strategists stated in a report that recent data suggests the Fed will stand pat at its July meeting and could potentially keep interest rates unchanged for the remainder of the year. They wrote: "The Fed is losing patience with above-target inflation. Inflation trends in the coming months are crucial—we expect inflation to fall as expected—otherwise the Fed may turn to raising rates later this year." Currently, money markets have priced in expectations of nearly two rate hikes by the Fed before the end of the year. However, the slowing inflation trend may prompt the Fed to keep rates unchanged this year, keeping the federal funds rate in the 3.50% to 3.75% range. "We expect the trend of declining inflation will keep the Fed standing pat this year." (Jin10)
Navigating Web3 tides with focused insightsTechFlow news, July 24, Morgan Stanley strategists stated in a report that recent data indicates the Fed will remain on hold at the July meeting and may keep interest rates unchanged for the rest of the year. They wrote: "The Fed is losing patience with inflation above target. Inflation trends in the coming months are crucial—we expect inflation to fall as expected—otherwise the Fed might turn to raising rates later this year." Currently, the money market has priced in expectations of nearly two rate hikes by the Fed before the end of the year. However, the trend of slowing inflation may prompt the Fed to keep rates unchanged this year, keeping the federal funds rate in the range of 3.50% to 3.75%. "We expect the trend of falling inflation will keep the Fed on hold this year." (Jin10)
