Morgan Stanley: The Federal Reserve is unlikely to cut interest rates in the near term

ChainCatcher news, Morgan Stanley analysts stated in a research report that the likelihood of the Federal Reserve lowering interest rates in the next two meetings remains low. The market's expectation for a rate cut in July has risen from 8% to 20%, while the expectation for a rate cut in September has increased from 60% to 90%.

However, analysts noted that most Federal Reserve officials support Powell's cautious stance and are unlikely to quickly endorse a rate cut. Analysts expect the upcoming employment report to be relatively robust, with a slowdown in growth but no signs of cracks that would prompt the Federal Reserve to accelerate action.