Lates News

Morgan Stanley strategists stated in a report that recent data indicates the Federal Reserve will hold steady at its meeting in July and may maintain interest rates unchanged for the remainder of the year. They wrote, "The Fed has lost patience with inflation above target. The inflation trend in the coming months is crucial - we expect inflation to fall as expected - otherwise the Fed may raise rates later this year." Currently, the currency market has priced in expectations for the Fed to raise rates twice before the end of the year. However, the trend of slowing inflation may prompt the Fed to keep rates unchanged this year and keep the federal funds rate in the range of 3.50% to 3.75%. "We expect the downward trend in inflation to keep the Fed on hold this year."