Morgan Stanley Just Gave The Fed Its Exit Strategy
The most stubborn bears on Wall Street just threw in the towel. Morgan Stanley, which previously held a hardline stance, has officially flipped its December forecast, admitting they โjumped the gunโ on inflation data. They now see the Fed delivering a 25 basis point cut this month, followed by more easing in January and April, targeting a terminal rate near 3.0%. JPMorgan quickly followed suit.
This isn't just chatter; this is institutional capitulation based on rapidly cooling labor markets and supportive commentary from key Fed members. The market is currently pricing in over an 86% probability for this move. When heavyweights like this shift, it signals a fundamental change in the liquidity landscape. The era of high rates is ending, which means the fuel for risk assets is about to flow again. Pay attention to $BTC and $ETH, because the restrictive macro environment that strangled the last cycle is dissolving faster than expected.
Not financial advice.
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