Fed forecast from Morgan Stanley

Morgan Stanley Senior U.S. Economist Ellen Zentner said she does not expect the Fed to raise interest rates at its November meeting. Morgan Stanley Economist Zentner said she does not expect the Fed to raise interest rates at its upcoming meeting. Zentner said in a podcast interview that “I think the Fed is done here. But they left the door open” regarding the Fed’s rate hikes to combat inflation. Zentner said that inflation has started to fall, so the bank will not make any changes until next year to cut interest rates. Zentner said, “In the short term, the possibility of a government shutdown by Republicans could deprive policy makers of the economic data they need to make decisions. This could strengthen officials’ hold-up thesis at the November meeting.” The Fed kept its policy rate steady at last week’s meeting, as expected, while most Fed officials had signaled for another rate hike this year.