Morgan Stanley's Bold Interest Rate Prediction

Morgan Stanley now anticipates a quarter-point interest rate cut by the U.S. Federal Reserve in December, following dovish comments from the central bank. The brokerage had previously not expected such a reduction to occur this year.

Morgan Stanley has revised its forecast, now projecting that the U.S. Federal Reserve will execute a quarter-point interest rate cut in December. This shift follows recent dovish remarks from policymakers at the central bank, which have influenced the brokerage's new outlook.

Previously, Morgan Stanley had not anticipated any rate cut to occur in December. However, the central bank's policymakers' comments have reshaped expectations.

This prediction marks a significant adjustment to Morgan Stanley's stance, reflecting the evolving economic indicators and signals from within the Federal Reserve.

(With inputs from agencies.)