Morgan Stanley: Expects the Federal Reserve to keep interest rates unchanged at the July meeting

According to Jinshi reports, Morgan Stanley strategists stated in a report that recent data indicates the Federal Reserve will remain steady at the July meeting and may keep interest rates unchanged for the remainder of the year. They noted that the inflation trend in the coming months is crucial, and inflation is expected to decline as anticipated; otherwise, the Federal Reserve may raise interest rates later this year.

Currently, the money market has priced in expectations for nearly two rate hikes by the Federal Reserve before the end of the year, but the trend of slowing inflation may prompt the Federal Reserve to maintain the federal funds rate in the range of 3.5% to 3.75%.