Economists at Morgan Stanley believe that the US Federal Reserve (Fed) is unlikely to go for an interest rate hike any time before 2023.

Key quotes

“US central bank will end its asset purchases by the middle of next year, but won’t raise its benchmark rate from near zero until early 2023.”

“Expect inflation to moderate and participation in the labor market to show a sustained rise.”

“Expect the world’s largest economy to grow 4.6% next year, led by consumer spending and capital investment.”

Contradicting his economists, Morgan Stanley CEO James Gorman said, “money is a bit too free and available right now,” adding that Fed should “start moving” in the first quarter of 2022.