- Morgan Stanley forecasts the US Federal Reserve will implement seven interest rate cuts in 2026, commencing in March.
- These cuts are projected to lower the terminal interest rate to between 2.5% and 2.75%.
- Economists at Morgan Stanley suggest that a mild recession could necessitate these rate reductions to address unemployment and stimulate economic growth.
- The anticipated rate cuts are expected to positively impact the stock market.
- Morgan Stanley also predicts a 9% decrease in the US Dollar Index over the next year, driven by these expected rate cuts and the strengthening of other global currencies.
Morgan Stanley Predicts Seven US Federal Reserve Rate Cuts in 2026
Jun 25, 2025, 7:56:21 AM UTC(21 days ago)
Impact: High
