Morgan Stanley Says Fed Hold Today Won't End Rate Hikes

Investors expect the Federal Reserve (Fed) to hold rates on Wednesday. Morgan Stanley chief US economist Michael Gapen says the Fed hold will still signal more rate hikes ahead. Markets already price a pause and lean toward a December hike. The statement’s tone, not the decision, could therefore move rate-sensitive assets such as Bitcoin (BTC). What Would Make a Fed Hold Sound Hawkish? Gapen told CNBC that the Fed will likely stay put while signaling that rates still have further to climb. The committee, he said, would argue it needs time to assess underlying trends first. Dissents, meaning votes against the majority, offer one clue. Three officials backed a hike when the Fed held in July, and Gapen expects two on Wednesday.

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