Morgan Stanley is out with its forecast for the Federal Reserve rate hikes during 2019. The investment bank says it now expects only one rate hike from the Fed during December 2019 against previously forecasted two (June and December).
The report further elaborates that the US central bank’s rate-hike trajectory will remain on hold after December 2019 through middle of 2020 until inflation picks up. It should also be noted that the investment bank expects three rate hikes next year, namely in June, September and December.
On the economic growth, the bank says that the US economy is moving through a trough at present with first quarter (Q1) 2019 growth likely around +0.5% followed by 2.3% increase in Q2. For the second half of 2019, the bank predicts 2.1% growth.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.