Fed on track to cut interest rates in June: Morgan Stanley official

Logo of US Federal Reserve

The US Federal Reserve is on track to cut interest rates in June, Bloomberg TV reported on Friday, citing Ellen Zentner, Chief US Economist at Morgan Stanley.

“It's going to be more about inflation, if the Fed were to cut as early as May,” Zentner said. “I think the bar is very high for them to go that soon though," she noted.

The top official also believes that the market’s expectation of about three cuts this year “is in line with the Fed’s view.”

“We expect four cuts, we actually expect them to speed up cuts in the fourth quarter of the year," Zentner noted.