Morgan Stanley interest-rate strategists said in a report that after the Federal Reserve’s September rate hike, they expect one additional increase in December and another in March next year. That path is less aggressive than current market pricing for the next 12 months.
The strategists said uncertainty around the Fed, economic growth, corporate debt issuance and oil-price moves has pushed up expectations for further monetary tightening over the coming year. Even so, Morgan Stanley said the Fed’s actual tightening is unlikely to reach the level implied by the market.
The bank’s view is that the key factors shaping the Fed’s policy path will not become clearer until later this year. Data from London Stock Exchange Group, or LSEG, shows money markets are currently pricing in a cumulative 100 basis points of Fed rate hikes over the next 12 months.
Morgan Stanley interest-rate strategists said in a report that after the Federal Reserve’s September rate hike, they expect one more increase in December and another in March next year.
Current market pricing, however, still points to a more aggressive path for rate hikes over the next year. The strategists said uncertainty around the Fed, economic growth, corporate debt issuance and oil prices is lifting expectations for additional monetary tightening over the coming 12 months.
Morgan Stanley said the Fed’s actual tightening is unlikely to match what the market is pricing in, because the key factors that will shape the policy path are not expected to become clearer until later this year.
According to data from London Stock Exchange Group (LSEG), money markets currently expect the Fed to deliver a cumulative 100 basis points of rate hikes over the next 12 months.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
