Morgan Stanley expects no rate cuts from the Fed this year

Morgan Stanley said on Thursday it expects the U.S Federal Reserve will not cut rates this year due to potential elevated inflation levels on the back of Trump’s latest tariffs.

Trump on Wednesday imposed a 10% baseline tariff on all imports to the U.S. and higher duties on dozens of other countries.

Fed officials back cautious policy approach in light of economic uncertainty

The Wall Street brokerage had earlier expected a 25 basis point cut in June.