Morgan Stanley Predicts Fed and ECB Likely to Cut Interest Rates in September
The timing of the Federal Reserve’s anticipated interest rate cuts is increasingly pointing towards September. Amidst widespread speculation, Morgan Stanley, a prominent US financial institution, has weighed in with its forecast.
According to Morgan Stanley, both the US Federal Reserve (Fed) and the European Central Bank (ECB) are expected to lower interest rates during this period. Andrew Sheets, a senior strategist at Morgan Stanley, shared insights with CNBC, attributing these predictions to recent economic indicators signaling a decline in inflation.
Sheets noted the cautious approach taken by both central banks, highlighting the Fed’s ongoing concern over persistently high inflation as a barrier to rate cuts. Nevertheless, he expressed optimism that inflationary pressures would ease sufficiently by September to warrant monetary easing actions.
“We anticipate interest rate reductions by both the Fed and ECB in September,” Sheets remarked, acknowledging the central banks’ reluctance to commit to definitive plans prematurely. He emphasized that forthcoming economic data, particularly concerning inflation trends, would likely support these anticipated rate adjustments.
Morgan Stanley’s projections have sparked discussions across financial markets, with speculation mounting about potential positive impacts on various sectors, including cryptocurrency markets such as Bitcoin and altcoins. Market experts believe that synchronized rate cuts by the Fed and ECB could bolster the current bullish trend in these digital assets.
*This article does not constitute financial advice.
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