Morgan Stanley: Oil price shocks may cause the Federal Reserve to delay the next rate cut

Golden Ten Data reported on March 12 that Morgan Stanley stated the Federal Reserve may resume interest rate cuts as early as June, but oil price shocks triggered by the Iran war could delay the Fed's actions. Although rising energy prices may exacerbate inflation, the bank's economists still adhere to their previous forecast that the Fed will cut rates twice this year, in June and September, with each cut being 25 basis points. However, they believe there is a possibility that the Fed could postpone the first rate cut to September or even December, which would mean the next rate cut might be delayed until 2027.