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Morgan Stanley: The Fed, with its focus on the labor market, will continue to cut interest rates

Morgan Stanley: The Fed, with its focus on the labor market, will continue to cut interest rates

Bitget2024/10/15 14:17

Morgan Stanley Wealth Management's Chief Investment Officer, Lisa Shalett, stated that the Federal Reserve is currently focusing on a "mixed" labor market. The Fed will continue to cut interest rates in November, but policymakers are being cautious as inflation is no longer cooling rapidly. Most of the Fed's policymakers gave the green light for further rate cuts in the coming months last week, while Raphael Bostic, president of the Atlanta Federal Reserve Bank indicated that a rate cut might be skipped in November.

Traders currently predict an 89% chance that the Fed will cut interest rates by 25 basis points at its policy meeting from November 6th to 7th. They have abandoned expectations for a 50-basis point cut after strong employment data in September and other optimistic economic data. (Jin10)

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