Morgan Stanley analysts now forecast no rate cuts in 2025 and for the rate cutting cycle to begin in March 2026. The terminal rate, they said, will stay at 2.50-2.75%.

Markets have been clamoring for rate cuts, and are eyeing the next two Fed meetings as possible windows. But Morgan Stanley analysts predict that the Fed won't be cutting rates in July or September.

Markets have been clamoring for rate cuts, and are eyeing the next two Fed meetings as possible windows. But Morgan Stanley analysts predict that the Fed won't be cutting rates in July or September.