#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. While the nonfarm payrolls report may show that the labor market remains strong, Morgan Stanley believes this is not enough to prevent the Fed from cutting rates in March. Overall, Morgan Stanley is positive about the Fed cutting rates in March and believes that the inflation outlook is the main basis for its judgment.