Morgan Stanley says so. Let’s remember that in September and October, when we see what really happens.
Note to Trump: if you lower interest rates, you are taking money from people who have some savings, and it’s in banks, and they are not able to find jobs. In other words, they depend on the miserly interest that banks pay.
The Fed rate that Morgan Stanley is talking about is the Fed’s discount rate. That’s the rate that banks pay to borrow directly from the Fed. It has little to do with the rates that we earn on our savings. That rate is set by the market.
Trump can’t “lower interest rates” nor raise them.
The Bond Market does that. The FED follows if the Bond Market moves far enough in either direction. It has no choice, it has to stay in balance with longer term rates set in the Bond Market.