Morgan Stanley Expects Federal Reserve to Hold Rates Steady at 3.5%-3.75% in July

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According to Morgan Stanley strategists cited by Jin10, the Federal Reserve will likely hold rates steady at its July meeting, keeping the federal funds rate in the 3.5%-3.75% range. The strategists noted that money markets have already priced in expectations for nearly two rate hikes by year-end, but a slowdown in inflation could support the Fed maintaining its current policy stance throughout the remainder of 2026.
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