Morgan Stanley IM: A Tactical De-risking and Fed Cut in November?

Was the 50 basis point rate cut by the Fed in September premature, and if so, should they skip a cut on November 7?

Fed officials have become less definitive about the pace of rate cuts based on:

• an recent upward revision to Gross Domestic Incomes
• a related increase in the estimated savings rate, making the consumer stronger
• a surprise rise in CPI and stronger retail sales data
• the rise in equity markets and tightening of credit spreads

So should the Fed skip a November hike, and what's at stake if they do?

Let's get into it!

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