In the latest client note, analysts at Morgan Stanley offer their outlook on the Federal Open Market Committee (FOMC) monetary policy for the next 12 months.
Key Quotes:
‘Tightening of financial conditions since the September FOMC equates to about 40bp in fed funds equivalent terms’.
This could chop off around 0.2% from FOMC 12 month growth forecast (median).
Expects dots to be lower.
Expect Fed hikes in December 2018 then March and June 2019.