Morgan Stanley: It is expected to cut interest rates by 25 basis points twice in 2027.

Morgan Stanley economists, based on the decision, statements, and press conference of the Federal Open Market Committee of the Federal Reserve on Wednesday, have withdrawn their expectations for a rate cut by the Fed this year, instead predicting two rate cuts of 25 basis points each in 2027. The Morgan Stanley team led by Michael Gapen stated in their report: "The Fed released a signal this month that is close to a shift towards a symmetric policy rate guidance and emphasized patience. We currently expect one rate cut each in January and March of 2027, for a total of two rate cuts."