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🇺🇸 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.

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#Morgan
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