31.01.2025 15:01
Morgan Stanley provided important clues regarding the interest rate policy of the United States Federal Reserve (Fed). Morgan Stanley noted that the Fed is expected to ease interest rates in March and June.
Declining inflation expectations in the U.S. have also increased expectations for a decrease in interest rates. In this context, Morgan Stanley, one of the leading banks in the U.S., evaluated the Fed's recent meeting where it kept interest rates steady in the range of 4.25-4.50 percent.
According to Morgan Stanley analysts, the first interest rate cut will occur in March, followed by a second step in June. This prediction is based on the progress made by the Fed in combating inflation and positive inflation forecasts. Although analysts indicate that the conditions for an interest rate cut have a higher threshold, they emphasize that the current economic outlook supports this cut.
FED IS NOT RUSHING ON INTEREST RATES
During the Federal Open Market Committee (FOMC) meeting held on Wednesday, the Fed kept the policy interest rate steady in the expected range of 4.25-4.50 percent. Fed Chairman Jerome Powell did not signal any rush for future interest rate decisions and stated that developments in inflation and employment data would be closely monitored.
The impact of these developments was also seen in the U.S. bond market. During trading in Europe, U.S. Treasury yields fell, reversing previous increases. The yield on the 10-year Treasury bond decreased by about 3 basis points to 4.522 percent, while the yield on the 2-year Treasury bond fell by 1 basis point to 4.216 percent.