The Federal Reserve looks set to kick the rate-hike can down the road in June, but is unlikely to pick it up, Morgan Stanley says, as incoming economic data won’t support a restart, keeping the central bank on an extended pause before a cut in Q1 next year.
“We continue to see the Fed on hold at the June meeting, and think the bar will be too high for the Fed to resume hiking,” Morgan Stanley said in a Friday note. “We continue to see the Fed on extended hold with the first cut in 1Q24.”
Read More : Fed Set to Skip June Rate Hike, Entering a Lengthy Pause before Potential Cuts, Morgan Stanley Reports