Wall Street Expert Suggests Interest Rates May Drop Further Than Market Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 01 2025
0mins
Source: MarketWatch
Fed Rate Cut Predictions
- Morgan Stanley's Outlook: The investment bank's interest rate strategy team suggests that the Federal Reserve may implement more aggressive rate cuts than currently anticipated by the market.
- Projected Rate Cuts: Their baseline forecast includes a 25 basis point cut at the upcoming meeting, with similar reductions expected at each subsequent meeting until December 2026.
Economic Scenarios
- Dovish Assessment: Morgan Stanley's economists have evaluated alternative economic scenarios, concluding that the likelihood of more dovish outcomes is significant, indicating a potential for sharper rate cuts than previously thought.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.








