Morgan Stanley Just Cut Its U.S. Growth Forecast Because Gas Prices Are “More Than Enough” to Wipe Out Bigger Tax Refunds

Morgan Stanley's U.S. economics team trimmed its full-year growth forecast, citing a specific drag from gasoline prices absorbing tax refunds. The revision implies weaker-than-expected consumer spending and a modest headwind to near-term economic growth. This is a cautious macro update rather than a market-disruptive event.

Analysis

Morgan Stanley's U.S. economics team trimmed its full-year growth forecast, citing a specific drag from gasoline prices absorbing tax refunds. The revision implies weaker-than-expected consumer spending and a modest headwind to near-term economic growth. This is a cautious macro update rather than a market-disruptive event.