#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 said it is more optimistic about the inflation outlook, believing that inflation will continue to decline, which will provide room for the Fed to cut rates. While the recent job market has been strong, Morgan Stanley believes this will not prevent the Fed from cutting rates in March, as they are more focused on the trajectory of inflation. Overall, Morgan Stanley believes that the Fed still has a high probability of cutting rates in March, which will depend on economic and inflation data in the coming weeks.