Morgan Stanley joins Goldman Sachs in 11th

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Published: 2026-09-15T09:54:50.173Z • Permanent link

Morgan Stanley's late Monday reversal was the latest in a series of high-profile calls from Wall Street firms, signaling a growing consensus among market participants that the Federal Reserve will soon hike interest rates. This shift in sentiment is largely driven by the recent surge in inflation data, which has led to a re-evaluation of the Fed's monetary policy stance. Specifically, the latest Consumer Price Index (CPI) report, which showed a 6.4% year-over-year increase in June, was cited by Morgan Stanley's economists as a key factor in their revised assessment. The report, which was released on Wednesday, June 7, highlighted the persistent upward pressure on prices, particularly in the categories of food, energy, and housing.

Goldman Sachs, which made a similar call just last week, has been at the forefront of this trend, with several of its top economists, including Jan Hatzius and David Lippman, arguing that the Fed will need to raise interest rates to keep pace with the rapidly growing economy. Morgan Stanley's decision to follow suit is seen as a significant development, given the firm's reputation for providing high-quality economic research and its influence on market sentiment. The firm's analysts have been closely following the Fed's monetary policy decisions, and their revised assessment is likely to have a significant impact on market expectations and trading decisions.

Morgan Stanley's decision is also notable for the fact that it was made just as the Fed's interest rate decision was about to be announced. The firm's analysts must have had access to sensitive information that suggested the Fed would be raising interest rates, and their revised assessment is likely to have been influenced by this information. The fact that Morgan Stanley was able to make this call so quickly suggests that the firm has a strong understanding of the Fed's decision-making process and is well-positioned to provide accurate analysis.

Morgan Stanley's decision to change its call on the Fed's interest rate decision has significant implications for the Data Sources domain. The firm's research has been a key input into market expectations, and its revised assessment is likely to have a significant impact on trading decisions. The data sources that Morgan Stanley uses, such as the CPI report, will also be closely watched by market participants, who will be looking for further evidence of the Fed's intent to raise interest rates. The impact of Morgan Stanley's decision on the broader financial markets will also be closely monitored, with traders and investors looking for signs of how the firm's revised assessment will affect market sentiment.

The decision by Morgan Stanley to change its call on the Fed's interest rate decision also highlights the importance of data sources in the financial markets. The firm's analysts have been closely following the CPI report, and their revised assessment is a testament to the importance of accurate and timely data. The data sources that Morgan Stanley uses, such as the Federal Reserve's Beige Book, will also be closely watched by market participants, who will be looking for further evidence of the Fed's intent to raise interest rates. The impact of Morgan Stanley's decision on the broader financial markets will also be closely monitored, with traders and investors looking for signs of how the firm's revised assessment will affect market sentiment.

The decision by Morgan Stanley to change its call on the Fed's interest rate decision is part of a larger pattern of changing market sentiment. In recent months, several major Wall Street firms, including Goldman Sachs and Bank of America, have made similar calls, signaling a growing consensus among market participants that the Fed will soon hike interest rates. This shift in sentiment is largely driven by the recent surge in inflation data, which has led to a re-evaluation of the Fed's monetary policy stance. The Fed's decision to raise interest rates is also seen as a response to the rapidly growing economy, which has led to concerns about the potential for inflation and interest rate pressures.