Morgan Stanley’s Ellen Zentner Says Fed Is Done Raising Rates for Now
- Highly unlikely Fed hikes in November, says chief US economist
- The bar is higher for Fed to do something further this year
When it comes to the US Federal Reserve’s campaign to crush inflation by raising interest rates, Morgan Stanley’s Chief US Economist Ellen Zentner says this: “I have a strong view that they’re done here — but they have left the door open.”
Zentner joined the What Goes Up podcast to discuss the Fed’s decision this week to leave the benchmark federal funds rate unchanged, and what she expects of monetary policy and the US economy going forward. With inflation cooling, the central bank will likely keep rates on hold until it’s ready to cut next year, she says. In the near term, a potential government shutdown by Republicans could leave policymakers without all of the economic data they need to make a decision, bolstering the case for Fed officials to maintain the status quo at the November meeting, Zentner said.