Economists at Morgan Stanley changed their predictions about the Federal Reserve's policy and instead believed that the central bank would raise interest rates by 25 basis points in September and December, respectively. The bank reiterated its estimate on August 14 that the Federal Reserve will not adjust interest rates this year and will cut interest rates by 25 basis points twice next year. “We expect the Fed to raise interest rates by 25 basis points at this week's meeting, and there will be no objection,” chief US economist Michael Gapen said in the research report. “Once the Fed acts, it rarely moves only once.” He predicted that after December, the Federal Reserve would suspend interest rate hikes as inflation slows down.

Economists at Morgan Stanley changed their predictions about the Federal Reserve's policy and instead believed that the central bank would raise interest rates by 25 basis points in September and December, respectively. The bank reiterated its estimate on August 14 that the Federal Reserve will not adjust interest rates this year and will cut interest rates by 25 basis points twice next year. “We expect the Fed to raise interest rates by 25 basis points at this week's meeting, and there will be no objection,” chief US economist Michael Gapen said in the research report. “Once the Fed acts, it rarely moves only once.” He predicted that after December, the Federal Reserve would suspend interest rate hikes as inflation slows down.