Morgan Stanley reiterates its call for the Federal Reserve to resume cutting rates in June and to deliver another cut in September. Soaring oil prices have prompted traders to pare back expectations for the size and timing of 2024 rate cuts, increasing uncertainty around easing. Continued energy-driven inflation risks could push markets to price in smaller or delayed cuts versus MS's baseline, tightening financial conditions. Monitor oil/CPI dynamics and Fed funds futures to reassess duration and cyclical positioning.
Morgan Stanley reiterates its call for the Federal Reserve to resume cutting rates in June and to deliver another cut in September. Soaring oil prices have prompted traders to pare back expectations for the size and timing of 2024 rate cuts, increasing uncertainty around easing. Continued energy-driven inflation risks could push markets to price in smaller or delayed cuts versus MS's baseline, tightening financial conditions. Monitor oil/CPI dynamics and Fed funds futures to reassess duration and cyclical positioning.
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