Morgan Stanley announced that it expects a 25 basis point rate hike in July after Fed Chairman Powell’s messages last week.
After Fed Chairman Jerome Powell signaled in his last speech that the Fed had not yet finished its hard walking cycle, Morgan Stanley announced that it expected a 25 basis point rate hike at the Fed’s July meeting.
In a research note released Tuesday, economists including Ellen Zentner expect the Bank to see an upward revision to the effective federal funding rate of 5.375 percent by the end of 2023, with the effective funding rate at 4.375 percent by the end of 2024.
Morgan Stanley economists cited Powell’s statements that “raising interest rates may make sense, but at a more moderate pace” and that “people on the committee believe it would be appropriate to raise interest rates once or twice.”