After announcing the probable ceiling of interest rates in the main central banks at the beginning of the week, Morgan Stanley (MS) provided detailed expectations for next week’s Federal Open Market Committee (FOMC) monetary policy meeting.
MS said that expects the Fed to offer a 25 basis point (bp) hike and announce a conditional pause.
The research also says that their rate strategists see scope for markets to extract a dovish message from the Fed at the next FOMC meeting. That said, Morgan Stanley highlights the news about the recent tensions in the banking system as a challenge to the hawks of US central banks.
It is worth noting that MS anticipates softer US GDP data for the second quarter (Q2), expecting figures of -0.4%.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
