Morgan Stanley Predicts: Fed's Interest Rate Cuts May Continue to Tighten Policy
Publication Time:2024-08-19 20:32:06
The well-known financial institution Morgan Stanley has issued the latest forecast, indicating that the Federal Reserve plans to implement two consecutive interest rate cuts of 25 basis points each in upcoming meetings. However, the institution's analysts speculate that Federal Reserve Chairman Powell will further elaborate on his mid-term strategic guidelines, particularly his commitment to controlling inflation, demonstrating the Fed's commitment to maintaining stable economic growth. Notably, when elaborating on this strategy, Powell may emphasize that even after implementing interest rate cuts, the overall monetary policy environment will remain tight to ensure the economy does not overheat and to effectively curb the rise in inflation. This move reflects the cautious attitude and balanced considerations of the Federal Reserve in addressing the current economic situation.
Federal Reserve
Inflation
Interest Rate Cuts
economic expansion