#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 data shows that the US labor market remains strong, Morgan Stanley believes that 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 likelihood of a Fed rate cut in March remains high, but the final decision will depend on economic data and inflation trends in the coming weeks.