Morgan is expected to uncertain outlook for inflation the Fed interest rates unchanged.

: Finance news, Wall Street investment banks-Morgan Stanley research report published this week, it is expected that this year the Fed will keep interest rates unchanged. Prior to this, the line is expected to cut interest rates this year, the US Federal Reserve.

In the latest report, it is expected that the Fed will maintain year 5.25% benchmark interest rate unchanged, but the row also forecasts last month, the second half of this year, the Fed will cut interest rates again. Report at the 2007 United States economic growth forecast from the beginning of 2.6% 1 to 2.8 percent, and overall inflation forecast by 1.4% last month to 1.6%.

Morgan Stanley believes that the United States real estate market recession period may have ended, the automobile industry has also seen in October last year, at the end of a drag on economic growth of the two major factors are easing, coupled with strong consumer spending, the current pace of economic growth in the United States more secure.

It pointed out that five factors will support the United States economy continued to expand steadily. First of all, net export growth; second, the inventory was quick to digest; third, oil prices are not too sharp rebound may occur because the non-OPEC oil-producing countries of supply is growing, future oil prices is expected to be between 50 and 60 per barrel to $ interval fluctuation; fourth, the recent employment data indicate that a substantial upward revision is expected to continue to support consumer spending economic expansion; Finally, good for economic growth in the financial markets provide a good environment, including the rise in the stock market, interest rates moderate, and liquidity ample.

Inflation, Morgan Stanley believes that Vista is uncertain, but more likely the uplink. It pointed out that the rent decrease is the core inflation rate decreased in the near future. However, the high inflation expectations, employment growth will continue to remain strong, productivity growth momentum, and other factors will be a potential cause of inflation.