📊 UPDATE: Morgan Stanley Forecasts Aggressive Fed Easing in 2026
Morgan Stanley projects that the U.S. Federal Reserve will implement seven interest rate cuts in 2026, beginning as early as March. The expected policy shift would reduce the terminal rate to 2.5%–2.75%, marking a significant pivot from current levels.
This outlook reflects expectations of slowing economic activity and controlled inflation, aligning with broader market anticipation of looser monetary policy in the medium term.
💭 Do you think such aggressive easing will reignite market risk appetite or spark inflation fears again?