MS flips forecast, predicts 25 bps cut at December Fed meeting

Morgan Stanley now expects a 25-basis-point rate cut at the December Fed meeting, reversing its earlier view as weak labor data and softer comments from officials shift expectations. The firm joins JPMorgan and Bank of America in its stance change and sees additional 25-bps cuts in January and April 2026. CME FedWatch places December cut odds at roughly 87%.