On Monday, the 12th of August 2019, a perspicacious group of analysts of Morgan Stanley, one of 24 so-called primary investment entities that trades directly with the US Central Bank, based on Midtown Manhattan, New York City, said that they were expecting Federal Reserve to trim interest rate again in September, which might follow another rate-cut in October, citing growing geopolitical angsts across the world forcing major central banks to ease monetary policy aimed at wrestling with an oozing recession risk.
In point of fact, latest warning bell of Morgan Stanley came forth a day after JPMorgan Chase & Co., another major US lender, had cautioned the investors saying money markets alongside US economy were fully priced in for a September rate-cut.
Nonetheless, analysts of JPMorgan Chase & Co. did not mention an October rate-cut, instead wiping out possibilities of a rancorous cycle of interest rate-cut in a near-term outlook, JPMorgan analysts were quoted saying that Federal Reserve would unlikely to risk another rate-cut before 2020.
Nonetheless, correcting their previous prediction of a lone rate-cut in October, Morgan Stanley analysts said in a statement on Monday (August 12th), “Trade’s ‘simmer’ has begun to boil, business sentiment and capex (capital expenditures) have softened further, global growth remains weak and inflation expectations have fallen. ”