Morgan Stanley: "Fed to Begin Interest Rate Cuts Starting September"

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Summary

Morgan Stanley reported that the Fed is expected to begin interest rate cuts starting this September.
Morgan Stanley indicated the possibility of a 25bp cut next month and an additional interest rate cut in December.
The report emphasized that with a 25bp cut each quarter, the final rate will reach 2.75%~3.0% by the end of next year.

A forecast has emerged that the U.S. Federal Reserve (Fed) will start cutting interest rates beginning in September.

According to Walter Bloomberg on the 26th (local time), Morgan Stanley stated, "The Fed will begin lowering rates starting this September," adding that "Fed Chair Jerome Powell expressed strong concerns about labor market risks in his Jackson Hole speech."

Furthermore, Morgan Stanley said, "We expect a 25bp cut next month," and added, "An additional rate cut will be implemented in December." The institution projected that the easing cycle would continue. The report emphasized, "A 25bp cut is expected each quarter thereafter, with the final rate reaching 2.75%~3.0% by the end of next year."