Morgan Stanley forecasts that the US Federal Reserve will reduce interest rates seven times by the end of 2026, bringing the rate down to a target range of 2.5% to 2.75%.
The first rate cut is expected in March 2026, later than initially projected, due to inflation risks from new US tariffs.
The shift in Fed policy could benefit high-risk assets like cryptocurrencies, with historical trends showing that crypto markets tend to thrive in low-interest environments.
While not confirmed by the Fed, market expectations are likely to adjust ahead of time, potentially impacting investor interest in digital assets.