Morgan Stanley say they "remain bullish on our call for three 25bp rate cuts this year". Remain bullish? OK then.
They expect the first Federal Open Market Committee (FOMC) cut in September. MS' previous forecast was for July.
MS say the reason for the delay in the first cut is:
- given the lack of progress in recent months it will take a bit longer for the FOMC to gain confidence to take the first step
Wow ... again.
MS is expecting rate cuts from the Fed to come tumbling in at the final three meetings of the year. Merry Christmas.
