Loading...
Morgan Stanley expects that despite hawkish signals from Federal Reserve Chairman Kevin Walsh at the Jackson Hole annual meeting, the Fed will maintain interest rates unchanged. The current inflation data provides a basis for the Federal Reserve to maintain patience. Morgan Stanley expects the US core CPI to rise by 0.23% month on month in August, and the core PCE to rise by 0.20% month on month. The correction of PCE data may cause the year-on-year growth rate of core PCE to decrease from 3.3% to approximately 3.1%. Federal Reserve Chairman Kevin Walsh's hawkish rhetoric aims to preserve policy flexibility.