Morgan Stanley says Federal Reserve will hold rates higher for longer, but then cut deeper
Morgan Stanley's chief US economist Ellen Zentner spoke at a conference re her projections Federal Open Market Committee (FOMC):“Make no mistake, they will be cutting rates this year” But “they can be patient and they can take their time” Morgan Stanley are forecasting the first in a series of rate cuts at the June meeting: Fed will hold rates steady for longer than the market expectsbut will then cut much more than expectedfirst 25bp cut in JuneThen, 25bp cuts in:SeptemberNovemberDecemberand following on with a 25bp cut in every meeting through 2025 This article was written by Eamonn Sheridan at www.forexlive.com.
Morgan Stanley's chief US economist Ellen Zentner spoke at a conference re her projections Federal Open Market Committee (FOMC):
- “Make no mistake, they will be cutting rates this year”
- But “they can be patient and they can take their time”
Morgan Stanley are forecasting the first in a series of rate cuts at the June meeting:
- Fed will hold rates steady for longer than the market expects
- but will then cut much more than expected
- first 25bp cut in June
Then, 25bp cuts in:
- September
- November
- December
- and following on with a 25bp cut in every meeting through 2025
