Morgan Stanley Disagrees with Bank of America on U.S. Inflation and Federal Reserve Policy

Morgan Stanley has diverged from the consensus view shared by many Wall Street firms, including Bank of America, which predicts further interest rate hikes due to persistent inflation. Morgan Stanley argues that recent data show declining inflation rates and expects no Fed moves in 2026 followed by two quarter-point cuts in 2027.

By Moz Farooque Thu, July 23, 2026 at 1:17 AM GMT+3 5 min read · Yahoo Finance ·

Morgan Stanley Disagrees with Bank of America on U.S. Inflation and Federal Reserve Policy

Tickers: $BAC $MS

Topics: economic forecasts Fed policy inflation interest rates

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