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Dovish FOMC to focus on falling inflation expectations – Morgan Stanley

Analysts at Morgan Stanley offer their expectations on Wednesday’s FOMC monetary policy decision due to be announced at 1800 GMT.

Key Quotes:

“Dovish FOMC may focus on falling inflation expectations – In light of rapidly falling inflation expectations, the Fed is likely to keep the door to a summer rate cut open.

US retail sales strength encourages investors to talk about a mid-cycle rate cut, which would be risk-positive.”  

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