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Morgan Stanley expects no rate cuts from the Fed this year

BY Reuters | ECONOMIC | 04/03/25 08:52 AM EDT

(Reuters) - 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.

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

(Reporting by Rashika Singh; Editing by Krishna Chandra Eluri)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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