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JUST IN:
🇺🇸 Morgan Stanley drops expectations of a December Fed rate cut and now forecasts three cuts in 2026
Markets: This could affect bond yields, equities, and other rate-sensitive assets. If rate cuts are delayed, yields may stay higher for longer.
Borrowing Costs: For loans tied to interest rates (like mortgages, business loans), this could shift when exactly borrowing gets cheaper.
Policy Risk: The Fed may face more pressure if economic data surprises — especially labor market data.
#Market
#Morgan