Morgan Stanley firmly supports the market's expectation of a rate cut by the Federal Reserve in September, backing the idea of a "soft landing" for the United States

Morgan Stanley reiterated its expectation of a 25 basis point rate cut by the Federal Reserve in September, despite significant global market declines. Market attention on the Bank of Japan's interest rate hike comments has heightened concerns about the risks to U.S. economic growth. However, Morgan Stanley economists remain steadfast in their prediction that the Fed will cut rates in September. They believe the U.S. economy is showing resilience and moving towards a "soft landing." Looking ahead, they emphasize that rate cuts by the Fed and an interest rate hike by the Bank of Japan could support the yen. Morgan Stanley expects the Bank of Japan to raise rates in January next year