#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 decline, providing room for the Fed to cut rates. Despite the recent strong jobs data, Morgan Stanley believes this will not change the Fed's rate cut expectations, as they are more focused on the trajectory of inflation. Overall, Morgan Stanley believes that the possibility of a rate cut in March remains high, but the ultimate decision remains in the hands of the Fed.