Higher U.S. Real Rates Reflect Growth, Fed Policy Debate

Dow Jones13:24

0524 GMT - Higher real rates seem to reflect growth drivers as well as Federal Reserve debate around policy changes, Morgan Stanley Wealth Management says in a note. "While commentary has centered on inflation risks and the Fed's priorities regarding its 2% target, estimates of how monetary policy may respond amid a potentially higher neutral rate or real rate have been less discussed," it says. This has implications for the concept of 'higher for longer', potentially lower pricing of a Fed-intervention market put and a more data-driven, rather than guidance-driven central bank, Morgan Stanley WM says. Bond investors seem to be simultaneously pricing both reduced inflation risks from oil and higher odds of a rate hike, it says. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

June 30, 2026 01:24 ET (05:24 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment