Morgan Stanley Delays Fed Rate Cut Forecast to September
Morgan Stanley has pushed back its expectations for the next U.S. Federal Reserve interest rate cut, now forecasting a move in September instead of June. The revision aligns the bank with other major institutions, including Goldman Sachs, which have also recently adjusted their outlook.
Fed Uncertainty and Geopolitical Risks Drive Forecast Change
The shift in expectations comes after the Federal Reserve highlighted growing uncertainty in the economic outlook. Ongoing tensions in the Middle East have added to market volatility, making policymakers more cautious about the timing of potential rate cuts.
As a result, major brokerages are increasingly anticipating that the Fed will keep interest rates higher for longer before beginning any easing cycle.
