Morgan Stanley: CPI data has been in line with 25 basis point rate cut expectations
Chris Larkin of Morgan Stanley E * Trade said that the market generally expects the Federal Reserve to cut interest rates by 25 percentage points next week, and today's CPI data is more or less on target, in line with the 25 basis point rate cut expectation. Those investors hoping for a bigger rate cut may be disappointed, but with inflation seemingly under control, the market may turn its attention back to economic growth, especially employment.