#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 is declining, which provides room for the Fed to cut rates. While recent employment data may show economic resilience, this does not necessarily mean the Fed will abandon its rate cut plans. Morgan Stanley believes that the Fed will ultimately focus on controlling inflation, and rate cuts are a necessary means to achieve this goal.