Morgan Stanley Sticks With June Rate Cut Call as Oil Surges

Morgan Stanley is sticking with a forecast that sees the Federal Reserve resuming interest rates cuts in June and delivering another reduction in September, even as soaring oil prices prompt traders to curb bets for how much policymakers will lower borrowing costs this year.

“We’re still on June and September, with the risk that of course it gets delayed,” Michael Gapen, chief US economist at Morgan Stanley told Bloomberg News in a roundtable discussion in New York on Monday.