#Morgan Stanley: March rate cut likely#

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Morgan Stanley believes that while the recent US nonfarm payrolls report may reduce the likelihood of a Fed rate cut, the possibility of a rate cut in March remains high due to a more favorable inflation outlook. Morgan Stanley said its optimism on the inflation outlook is based on a "more favorable" inflation outlook, suggesting they believe inflation is declining and the Fed may soon shift its tightening policy.

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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 optimistic outlook on inflation makes it believe that the possibility of a rate cut is still significant. This suggests that despite potential volatility in recent economic data, Morgan Stanley remains bullish on future economic growth and believes that the Fed may cut rates in March to stimulate economic growth.

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