Morgan Stanley's Gower: Fed Holding Rates Through '26
Bloomberg 2026-06-22 16:55:12
Context: Morgan Stanley's Lead Metals & Mining Strategist, Amy Gower, recently shared the firm's forecast that the Federal Reserve will maintain interest rates through 2026. This prediction diverges from market expectations, which anticipate around 1.6 rate hikes by the end of the year. Gower's comments highlight the significant impact of the Fed's policy decisions on gold prices.
Key Facts
- Morgan Stanley expects the Federal Reserve to keep interest rates on hold through 2026, contrasting with market expectations of approximately 1.6 rate hikes by year-end.
- Amy Gower, Morgan Stanley Lead Metals & Mining Strategist, emphasized that the Fed's policy decisions will be crucial for gold's trajectory, particularly given the significant role of exchange traded funds (ETFs) in gold demand.
- The Fed's policy decisions closely track Fed actions, and a stable rate environment would support gold, while further rate hikes could trigger increased ETF selling, potentially weighing on gold prices.