#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 said it is more optimistic about the inflation outlook, which makes it believe that the possibility of a rate cut is still high. While the nonfarm payrolls report showed that the US labor market remains strong, Morgan Stanley believes that this will not change the Fed's likelihood of cutting rates in March. They believe that the downward trend in inflation will continue, which will provide room for the Fed to cut rates.