From Financial Modeling Prep: 2024-12-19 01:50:40

Morgan Stanley adjusts its outlook on Federal Reserve interest rate cuts, predicting fewer and delayed cuts in 2025 due to inflation concerns. No January rate cut expected, with gradual cuts in March and June. Terminal rate forecast increased to 2.6% in 2026.

Goldman Sachs echoes the sentiment, citing “sticky inflation” and a strong labor market. Fed likely to hold rates steady in January, with market sentiment shifting to 91.1% probability. Economic factors like trade and fiscal policy impact rate decisions.

Investors can track policy shifts and sector impacts through Economics Calendar and Sector P/E Ratio Overview. Morgan Stanley’s cautious approach reflects market challenges in 2025, shaping strategies amid inflation and policy uncertainties.



Read more at Financial Modeling Prep:: Morgan Stanley Revises Rate Cut Expectations After Hawkish Fed Signals