In its latest client note released on Sunday, economists at Morgan Stanley offered their view on the Fed’s monetary policy outlook in the coming months.
Key Quotes:
“This past week, we heard from both the Chair and Vice-Chair
We think they’ve sent a consistent message: The Fed is data-dependent, but with the economy doing as well as it is today, it still anticipates a gradual hiking path.
While the bar for changing course remains high, we sense a subtle shift in tone relative to a few weeks ago, putting more emphasis on data dependence and signaling some flexibility on policy management after reaching neutral.”
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