Morgan Stanley pushes Fed rate cut expectation to September from July

(Reuters) - Morgan Stanley said it now expects the U.S. Federal Reserve to start lowering interest rates from September, compared to its earlier forecast of July, while continuing to see three 25-basis-point rate cuts through the year.

"A reversal in key components points to disinflation ahead, but given the lack of progress in recent months it will take a bit longer for the FOMC to gain confidence to take the first step," the brokerage said in a note on Tuesday.

(Reporting by Gokul Pisharody in Bengaluru; Editing by Janane Venkatraman)

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