Morgan Stanley: The Federal Reserve is expected to hold rates steady next week

BlockBeats News, on July 24, Morgan Stanley strategists stated in a report that recent data indicates the Federal Reserve will likely hold rates steady at its July meeting and may keep rates unchanged for the remainder of the year. They wrote: "The Federal Reserve is losing patience with inflation remaining above target. The inflation trend in the coming months is crucial—we expect inflation to decline as anticipated—otherwise, the Federal Reserve may choose to raise rates later this year."

At present, the money market has already priced in expectations of nearly two rate hikes by the Federal Reserve before the end of the year. However, a slowdown in inflation could prompt the Federal Reserve to maintain rates throughout the year, keeping the federal funds rate in the 3.50% to 3.75% range. "We expect the downward trend in inflation will lead the Federal Reserve to stay on hold this year."