Fed expects rate cuts in September, but non-farm data poses a key risk
Source: ChainCatcher
Time: 2025-09-03 14:40:40
According to ChainCatcher, Morgan Stanley revised its expectations that the Fed would cut interest rates twice this year at the end of August, reiterating expectations that the Fed would cut interest rates in September, but warned that strong employment or rising inflation could delay the rate cut plan. Morgan Stanley pointed out that debates within the Federal Reserve may lead to disagreements, and some policy makers believe that the rate cut is too early. The agency still expects the Fed to continue its dovish route next year, assuming a quarterly rate cut in 2026 with a terminal rate of 2.75% to 3%.