Citing a "lack of progress" in inflation, Morgan Stanley economists pushed back their expectations for the first Fed rate cut from July to September. They still expect three 25 basis point rate cuts this year. The lack of progress since the beginning of the year means it will take longer for Fed policymakers to be confident that inflation is falling back toward its 2% target, economists including Ellen Zentner, Sam Coffin and Diego Anzoategui said in the report. They expect the three-month and six-month core PCE to be "close to or below" 2% by the end of the year, in which case waiting until after September to cut rates "will be too late." (Cailian Press)