Morgan Stanley: Expects the next rate cut cycle by the Federal Reserve to be delayed until March next year

Morgan Stanley analysts released a report pushing back the expected timing of the Federal Reserve's next interest rate cut to next year, citing inflation risks from tariffs. Morgan Stanley stated that considering inflation may be significantly elevated in the coming months, the expectation for a rate cut in June of this year has been removed, and the next rate cut cycle is now expected to begin in March next year, with a final rate of 2.5% to 2.75%. The report pointed out that the Federal Reserve will find it difficult to ignore the recent upward trend in inflation and quickly ease policies, which of course depends on whether the economy remains in a moderate growth environment. If so, the Federal Reserve needs to see that the push on commodity prices is temporary