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Brokerages predict US Federal Reserve to cut interest rates, impacting global markets.
Summary
Morgan Stanley, J.P. Morgan, and BofA Global Research now predict the Federal Reserve will cut interest rates in December. This change is influenced by recent economic data and statements from Fed officials, with further cuts expected in January and April, projecting a terminal rate of 3.0%-3.25%.
Key Points
- Morgan Stanley revised its outlook on US interest rate cuts.
- The Federal Reserve is now expected to cut rates in December.
- J.P. Morgan and BofA Global Research share a similar outlook.
- Further rate cuts are anticipated in January and April.
- The projected terminal rate is 3.0%-3.25%.
Full Article
Morgan Stanley now expects the Federal Reserve to cut interest rates by a quarter-percentage point in December, aligning with J.P. Morgan and BofA Global Research. This shift follows softer economic data and dovish remarks from Fed officials. The firm anticipates further cuts in January and April, projecting a terminal rate of 3.0%-3.25%.
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