Morgan Stanley says the US is in a disinflationary process, lower their inflation forecast

<p>A Morgan Stanley note from Friday ICYMI, saying that the data on inflation that was out during the week, for US CPI and PPI "point to a quicker progression in the disinflationary process". And add that the slower momentum is "notable".</p><p>Morgan Stanley have thus lowered their forecast for core PCE inflation in 2023 and 2024:</p><ul><li>3.3% 4Q/4Q this year (from 3.4%)</li><li>and 2.2% in 2024 (from 2.3%)</li></ul><p>Separately MS say that the <a href="https://www.forexlive.com/news/us-auto-workers-strike-continues-a-21-pay-increase-was-made-and-rejected-20230917/" target="_blank" rel="follow">Auto Workers strike</a> adds to uncertainty in the economy and that will keep the Federal Open Market Committee (FOMC) on hold for the rest of 2023. </p><p>—</p><p>The FOMC statement is due on Wednesday at 2pm US Eastern time:</p>

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