Morgan Stanley Switches to Forecasting Fed Rate Hike, Joining Goldman Sachs

Morgan Stanley late on Monday joined Goldman Sachs in changing its forecast for the Federal Open Market Committee, shifting from an expectation that rates would stay unchanged to a prediction that the U.S. central bank will hike interest rates.

The revision came in an 11th-hour switch, meaning it was made shortly before the Fed's decision. Both Morgan Stanley and Goldman Sachs had previously forecast that the FOMC would leave rates unchanged, before revising their calls to a hike.

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