Morgan Stanley says Federal Reserve will hold rates higher for longer, but then cut deeper

<p>Morgan Stanley's chief US economist Ellen Zentner spoke at a conference re her projections Federal Open Market Committee (FOMC):</p><ul><li>“Make no mistake, they will be cutting rates this year” </li><li>But “they can be patient and they can take their time” </li></ul><p>Morgan Stanley are forecasting the first in a series of rate cuts at the June meeting:</p><ul><li> Fed will hold rates steady for longer than the market expects</li><li>but will then cut much more than expected</li><li>first 25bp cut in June</li></ul><p>Then, 25bp cuts in:</p><ul><li>September</li><li>November</li><li>December</li><li>and following on with a 25bp cut in every meeting through 2025</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.