Midday News

On July 24, Morgan Stanley strategists said in a report that recent data indicate the Federal Reserve will hold steady at its July meeting, and could keep interest rates unchanged for the rest of this year. They wrote: “The Federal Reserve is losing patience with inflation that runs above target. The inflation path in the coming months is crucial—we expect inflation to fall as anticipated—otherwise the Federal Reserve could turn to rate hikes later this year.”

The money markets have already priced in expectations of nearly two rate hikes by year-end. However, the trend of slowing inflation may lead the Federal Reserve to keep interest rates unchanged this year, keeping the federal funds rate in the range of 3.50% to 3.75%. “We expect the inflation decline trend will keep the Federal Reserve on hold this year.” $BTC