Morgan Stanley predicts that the Federal Reserve will not raise interest rates in the second half of the year and recommends that China optimize its economic rebalancing

Morgan Stanley economist Xing Ziqiang believes that the probability of the Federal Reserve raising interest rates in the second half of the year is low, and there may be a rate cut next year, but the policy opacity of Federal Reserve Chairman Kevin Walsh will exacerbate market volatility. The financing scale of American technology giants in the next year is close to $100 million, which will affect global liquidity. Xing Ziqiang suggested that China allocate 200 million US dollars of unused quota for technology and energy construction. Laura Wang Ying, Chief Strategist of Morgan Stanley, stated that the possibility of a US interest rate hike in July is extremely slim, and there may be a rate cut in the first half of 2027. Laura Wang Ying believes that the Chinese national team has sold $15 million in A-share positions since the beginning of the year, which has the strength to stabilize market fluctuations.