MORGAN STANLEY DELAYS FED RATE CUT OUTLOOK Morgan Stanley now expects the Federal Reserve to cut rates in September and December, pushing back its earlier forecast of June and September. The shift reflects a more cautious Fed after the latest meeting, with Chair Jerome Powell signaling that clear progress on inflation is still needed. Rising oil prices and geopolitical risks are adding uncertainty and complicating the Fed’s policy path. The bank sees a balanced stance from the Fed but notes markets may face volatility in the meantime. It warns the biggest risk is that rate cuts could be delayed further—or not happen at all—unless economic growth weakens sharply.