#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's optimism on the inflation outlook stems from its belief that inflation is moving in a favorable direction, leading them to take a more positive stance on a March rate cut. While the nonfarm payrolls report may show a strong economy, Morgan Stanley believes that this will not change the Fed's determination to act on inflation control, so the possibility of a rate cut still exists.