Morgan Stanley Sees Fed Hiking Rates in July After Powell Speech

(Morgan Stanley economists, including Ellen Zentner, have revised their outlook and now anticipate the Federal Reserve to raise interest rates at its upcoming July meeting. This adjustment comes after Federal Reserve Chair Jerome Powell indicated that the central bank is not yet finished with its aggressive tightening cycle. In a research note published on Tuesday, the economists stated that the threshold for a rate hike in July is now much lower than their initial expectations, and they predict a 25 basis point increase next month.