Sanaa Mustafa
Morgan Stanley announced the disappearance of expectations for the Federal Reserve to cut interest rates this year,
Stanley attributed this to a group of economic data announced in recent weeks.
The American Investment Bank also expects that the first US rate cut will take place in March 2024, contrary to its previous expectations of implementing the first cut in December 2023.
Morgan Stanley analysts expect the Fed to cut interest rates by 25 basis points each quarter, to 4.25% by 2024.
The Federal Reserve has raised interest rates 8 consecutive times since last March, to reach the range of 4.5% and 4.75%, amid expectations of implementing 3 additional increases this year.
Recently, US economic data also revealed the continued strength of the labor market and the inflation of consumers and producers in the United States, which raised expectations that the Federal Reserve will continue to tighten monetary policy.
