Morgan Stanley: The Federal Reserve Is Unlikely to Cut Rates in the Near Term

According to a report by Jinse Finance, Morgan Stanley analysts stated in a research note that the likelihood of the Federal Reserve cutting interest rates at its next two meetings remains low. Market expectations for a rate cut in July have risen from 8% to 20%, while the probability for a September cut has increased from 60% to 90%. However, the analysts noted that most Fed officials support Powell’s cautious stance and are unlikely to back a rate cut soon. The analysts expect the upcoming employment report to be relatively robust; although job growth may slow, there are no signs of cracks that would prompt the Fed to accelerate its actions.