Investors Expect 0.25% Rate Cut on Wednesday, According to Morgan Stanley Survey
The majority of investors surveyed by Morgan Stanley anticipate a 25 basis point interest rate cut during the upcoming September Federal Open Market Committee (FOMC) meeting. The survey, conducted from September 9-11, gathered responses from management teams across various sectors, with most predicting a 25bps cut. While some sectors expect a 50bps reduction, market expectations have shifted towards a higher likelihood of a larger cut. Despite this, Morgan Stanley aligns with the majority view and predicts a 25bp cut at the meeting. The firm also expects the FOMC statement to acknowledge progress in taming Inflation and highlight risks in the labor market, with Fed Chair Jerome Powell likely to maintain a data-dependent stance on future rate cuts. Updates to the Fed’s Summary of Economic Projections are expected, including revisions to unemployment and core PCE Inflation projections for 2024.
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Emma Collins, graduated in Financial Economics from the University of Chicago in the USA in 2016. She has since worked at an asset management firm in New York, where she specializes in investment strategies and portfolio management. Emma has a keen interest in financial analysis and has published several articles in renowned financial journals. Her work focuses on providing actionable insights to investors, and she is known for her forward-thinking approach to managing financial portfolios.