#Morgan Stanley: March rate cut likely#

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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. They argue that the downward trend in inflation provides the Fed with more room to cut rates, making a March rate cut still very likely.

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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 in March is still high. While the nonfarm payrolls report may indicate a strong economy, Morgan Stanley believes that the downward trend in inflation is more important, which will give the Fed room to cut rates.

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