Morgan Stanley predicts the Fed won't raise interest rates this year

Morgan Stanley is also turning dove. Their economists said the Fed won't raise rates this year,

They gave three main reasons:

First, Waller's stance has shifted from solely focusing on inflation to also paying attention to employment, signaling a dovish tilt,

Second, falling oil prices have lowered future inflation expectations,

Third, Morgan Stanley's internal inflation forecast is below the Fed's internal median, so they believe the Fed won't raise rates in '26,

Well, anyway, the data will tell. Whether there will be a rate hike, we'll know by looking at the CPI data in June and July.

$iShares barclays 20+ Yr Treasury Bd(TLT.US)$Micron Tech(MU.US)$NVIDIA(NVDA.US)$Meta Platforms(META.US)$Apple(AAPL.US)$Invesco QQQ Trust(QQQ.US)