Fed Pivots: What it Means for MS' Capital Markets Business

Key Takeaways The Fed lowers rates by 25 bps, signaling two more cuts by the end of this year.Morgan Stanley expects stronger IB fees from revived M&A, equity offerings and debt issuance.Trading income should rise as rate shifts drive volatility across FICC and equities markets.The Federal Reserve implemented a 25-basis-point interest rate cut earlier this month, after a nine-month pause. It also signaled two more cuts by the end of this year. Against such a backdrop, let’s try to decipher how Morgan Stanle ...