ICYMI: Morgan Stanley forecasts two 25-basis-point rate 2025 cuts, September then December ...Middle East

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ICYMI: Morgan Stanley forecasts two 25-basis-point rate 2025 cuts, September then December

Morgan Stanley has shifted its Fed outlook, joining other analyst firms in forecasting a September rate cut.

Justin had the news earlier:

    Fed to cut rates twice by year-end now - Morgan Stanley

    The change follows Powell’s Jackson Hole emphasis on labour market risks, a notable departure from his earlier focus on stubborn inflation and strong employment. The bank now expects two cuts this year — September and December — followed by steady quarterly 25bp reductions through 2026, bringing rates down to 2.75–3.0%.

    This marks a major shift from its previous view that policy would remain on hold until March 2026 before easing more aggressively.

    This article was written by Eamonn Sheridan at investinglive.com.

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