Morgan Stanley Lowers Fed Rate Cut Expectations Due to Tariff Concerns

Reported about 8 hours ago

Morgan Stanley has revised its forecast for a U.S. Federal Reserve interest rate cut to just one 25 basis point reduction this year, attributing the change to uncertainties surrounding President Trump's tariff policies. Previously, the brokerage anticipated two cuts in March and June. While competitors like Goldman Sachs and Wells Fargo still predict two cuts, analysts warn that increased tariffs may exacerbate inflation and complicate the Fed's ability to reduce rates further, as they aim to address persistent inflationary pressures.

Source: YAHOO

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