#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, providing room for the Fed to cut rates. Despite the recent strong economic data, Morgan Stanley believes that the Fed still needs to take steps to control inflation, and a rate cut is one such measure. Therefore, while the likelihood of a near-term rate cut has decreased, Morgan Stanley still believes that the possibility of a rate cut in March remains high.