More on Morgan Stanley projecting 5 Federal Reserve interest rate hikes

  • “Although the contours of our outlook for inflation and labour markets has not changed, aspects of the Fed’s reaction function may have.”
  • Powell’s recent comments are suggestive of the FOMC is now placing a higher priority on price stability in order to sustain strength in the labour market.

MS also said, on the US dollar:

  • will continue to rally against its peers in the coming months