Fed Flags Hike Risk
Morgan Stanley expects the Fed to hold rates this year but flags risks of hikes if unemployment drops or inflation stays elevated
FED HIKE RISK BACK ON THE TABLE Morgan Stanley still expects the Fed to hold rates this year-but flags risks.
If unemployment drops below 4% or inflation stays elevated, rate hikes could return.
Cooling oil prices and easing tariff effects support the no-hike view.
Inflation is forecast near 3%, with modest job growth keeping labor stable.
But stronger inflation or renewed geopolitical tensions could quickly shift the outlook.