#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 recent employment data has been strong, Morgan Stanley believes it does not fully offset the downward pressure on rates from declining inflation. Therefore, they believe a March rate cut is still very likely and that a rate cut would be the Fed's best strategy to address declining inflation and a slowing economy.