Morgan Stanley: Expects the Federal Reserve to hold steady next week

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Golden Finance reported that on July 24, a Morgan Stanley strategist said in a report that recent data indicates the Federal Reserve will hold steady at its July meeting, and may keep interest rates unchanged for the rest of this year. They wrote: “The Federal Reserve is losing patience with inflation that is above target. The inflation trajectory over the next few months is crucial—we expect inflation to cool as expected—otherwise the Federal Reserve may turn to rate hikes later this year.” The current money markets have already priced in expectations of nearly two rate hikes by year-end. However, the trend of easing inflation could lead the Federal Reserve 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 to keep the Federal Reserve on hold this year.” (Jin Shi)
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