#Morgan Stanley: March rate cut likely#

Morgan Stanley believes that while the recent US nonfarm payrolls report may reduce the likelihood of a Fed rate cut in the near term, the possibility of a rate cut in March remains high due to a more favorable inflation outlook. Morgan Stanley is optimistic about the inflation outlook, believing that inflation will continue to decline, which will provide room for the Fed to cut rates. Although recent employment data has been strong, Morgan Stanley believes this is not enough to prevent the Fed from cutting rates, as they are more focused on the trajectory of inflation. Overall, Morgan Stanley is positive on a March rate cut, believing that the likelihood of a rate cut remains high.