Morgan Stanley: U.S. 'No Job Productivity Boom' Will Prompt Fed to Further Cut Rates

By: theblockbeats.news|2025/12/25 17:46:08
0
Share
copy

BlockBeats News, December 25, a Morgan Stanley strategist pointed out that the U.S. economy may be facing a "jobless productivity-led boom," which will suppress inflation and pave the way for more Fed rate cuts.

U.S. Labor Department data shows that in the second quarter, the year-on-year growth in hourly output of all non-farm workers was 3.3%, a significant improvement from the 1.8% year-on-year decline in the previous quarter. Investors' expectations for the Fed's rate cut pace next year are more aggressive than official forecasts.

According to the CME FedWatch Tool, Fed officials expect to cut rates only once by 2026, but investors believe there is a 72% probability of a year-end rate cut. (FXStreet)

You may also like

Aave Founder: What Is the Secret of the DeFi Lending Market?

When on-chain lending becomes significantly cheaper to operate end-to-end compared to traditional lending, mass adoption becomes not a question of if, but of when.

The Trader's Playbook: 7 Market Cycle Lessons From LALIGA’s 90 Minutes

What do LALIGA matches teach about crypto markets? Learn how consolidation, breakouts, and late-cycle volatility shape disciplined trading decisions.

How Smart Money Tracker Survived Live AI Trading at WEEX AI Hackathon

Discover how WEEX AI Trading Hackathon tested strategies with real capital—no simulations. See how Smart Money Tracker survived flash crashes and leveraged 18x in live markets.

80% Win Rate to 40% Drawdown: An AI Trader's Brutal Recalibration at WEEX AI Wars

Dive into the technical blueprint of an AI trading system built on LLaMA reasoning and multi-agent execution. See how Quantum Quaser uses confidence thresholds & volatility filters at WEEX AI Wars, and learn the key to unlocking 95% win rate trades.

AI Trading Strategy Explained: How a Beginner Tiana Reached the WEEX AI Trading Hackathon Finals

Can AI trading really outperform human emotion? In this exclusive WEEX Hackathon finalist interview, discover how behavioral signal strategies, SOL trend setups, and disciplined AI execution secured a spot in the finals.

When AI Takes Over the 'Shopping Journey,' How Much Time Does PayPal Have Left?

Stripe and PayPal are shifting from payment tools to AI business infrastructure, competing to become the default engine for AI transactions.

Popular coins

Latest Crypto News

Read more