Morgan Stanley Scraps December Fed Cut, Forecasts Three 2025 Reductions

Morgan Stanley analyst Michael Gapen revised the firm's Federal Reserve policy outlook on Nov. 20, removing expectations for a December rate cut and projecting three reductions in January, April, and June 2025, Jin10 reports. The analyst cited strong employment data as lowering unemployment risks. The forecast maintains a terminal rate target of 3% to 3.25%.