Morgan Stanley: Fed may hike rates if unemployment drops below 4%
Morgan Stanley Bank forecasts that the Federal Reserve is likely to keep interest rates unchanged until the end of the year. However, it indicated that a drop in the unemployment rate below 4% or sustained high inflation levels could prompt the Fed to raise interest rates. The bank clarified that declining oil prices and the reduced impact of tariffs support the current policy, with inflation expected to fall below official estimates. It also forecasts the addition of 50 to 60 thousand jobs per month during the summer, though these expectations could change if inflation accelerates or tensions in the Middle East escalate.
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