#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 the nonfarm payrolls report showed a strong job market, Morgan Stanley believes this is not enough to prevent the Fed from cutting rates in March. They believe the Fed is more focused on inflation, and the downward trend in inflation will push the Fed to take rate-cutting measures.