I posted earlier on analysts at Morgan Stanley’s Federal Open Market Committee (FOMC) forecast:

Morgan Stanley predict the Federal Reserve may not cut interest rates until June

Individually, the portfolio options CIO at Morgan Stanley Funding Administration was interviewed on bbgt TV on Wednesday, and he leans in the direction of very aggressive cuts certainly, saying the Fed wish to get to an actual yield (nominal Fed Funds charge minus inflation) round 1.5% as its impartial degree:

so if we
take a look at nominal Fed Funds right now at
5.5% and to illustrate US
inflation is at
3% meaning actual
coverage charges are at
2.5% which implies that
the FED might reduce a
100 foundation factors
simply to get to their
impartial degree
there’s like six charge cuts priced in however
keep in mind 100 foundation
factors of these charge cuts is de facto simply
attending to impartial, they usually do not
begin actually easing
till they begin
doing greater than 100

He goes on to debate the Fed’s perspective to the fairness rally:

if the
markets are rallying
that is okay with the Fed, the Fed does not
should push again on
on a rally as a result of
they do not like a
rally that is not their
job

successfully what
they’re saying is
can we get this
rally and might inflation
additionally keep low

and if the reply is
sure
to each then they
do not care if if the
market continues to rally