Morgan Stanley Predicts Fed Rate Cut This September
Morgan Stanley expects a Fed rate cut in September as Jerome Powell signals a policy shift.
- Morgan Stanley forecasts Fed rate cuts in September
- Powell’s recent tone suggests softer monetary policy
- Markets react to possible easing by the Federal Reserve
Morgan Stanley Anticipates September Rate Cuts
Investment giant Morgan Stanley now expects the U.S. Federal Reserve to begin cutting interest rates in September 2025. This projection follows recent signals from Fed Chair Jerome Powell, who has shifted toward a more dovish tone on monetary policy.
According to a report by Reuters, the Fed appears to be preparing for a more flexible approach, with concerns over slowing inflation and labor market cooling influencing the policy outlook. Morgan Stanley’s forecast aligns with increasing market speculation that rate hikes are behind us, and easing is on the horizon.
Powell’s Tone Signals a Strategic Shift
In his latest public appearances, Powell emphasized the need to balance inflation control with economic stability. He noted signs of progress in reducing inflation while acknowledging potential risks to employment and growth.
This change in tone has been interpreted as a soft pivot—indicating that the Fed may be more open to cutting rates sooner than previously expected. For analysts at Morgan Stanley, this is a strong enough cue to predict the first rate cut coming as early as September.
Impact on Markets and Crypto Outlook
Rate cuts typically lead to lower borrowing costs, increased liquidity, and stronger investor sentiment—all of which can influence both traditional and crypto markets. A September rate cut could spark renewed bullishness in stocks and digital assets, especially as investors seek higher-yielding opportunities in riskier assets like Bitcoin and Ethereum.
With macroeconomic uncertainty still looming, all eyes remain on the Fed’s next move. But if Morgan Stanley’s prediction holds, the financial landscape could shift significantly in the final quarter of the year.
Read Also:
- Ethereum “Cheap” Says Standard Chartered’s Kendrick
- Wisconsin Fund Boosts Bitcoin Exposure via MicroStrategy
- BlockDAG Presale Hits $383M as BNB Eyes $920 & XRP Price Sentiment Turns Cautious in 2025
- Cold Wallet Presale Surges Past $6.37M as Aave, Solana, and Avalanche Compete: What Crypto to Buy Now?
- Polymarket Gets Backing from 1789 Capital, Adds Trump Jr.
