Morgan Stanley: The Fed is expected to stay put next week

Odaily Planet Daily News Morgan Stanley strategists stated in a report that recent data indicates that the Federal Reserve will stay put at its July meeting and may keep interest rates unchanged for the remainder of this year. They wrote: "The Fed is losing patience with inflation remaining above target.

The trend of inflation in the coming months will be crucial—we expect inflation to fall as anticipated—otherwise, the Fed may shift to raising interest rates later this year." Currently, the money market has priced in expectations of nearly two rate hikes by the end of the year. However, the easing of inflation may prompt the Fed to keep rates unchanged this year, maintaining the federal funds rate in the range of 3.50% to 3.75%. "We expect the disinflation trend will keep the Fed on hold this year." (Jin Shi)