Fed may delay rate cuts to Sept. – Morgan Stanley

Investment bank Morgan Stanley pushed back its forecast for US Federal Reserve rate cuts to September from their previous July prediction, as reported by Reuters on Wednesday.

The brokerage maintains its expectation of three 25-basis-point rate cuts throughout the year. However, they acknowledge a delay in initiating the cuts due to a “lack of progress” on inflation reduction in recent months.

In a Tuesday note, Morgan Stanley cited “a reversal in key components” as pointing towards disinflation, a decrease in inflation.