Morgan Stanley interest-rate strategists say that after a September hike they expect one additional Fed rate increase in December and another in March. Markets are pricing a more aggressive path for the next 12 months; LSEG money-market data show roughly 100bps of cumulative Fed tightening priced over the next year. Strategists say uncertainty around the Fed's policy path, growth, corporate bond issuance and oil is lifting market expectations, but Morgan Stanley expects the Fed's actual tighteni

Morgan Stanley interest-rate strategists say that after a September hike they expect one additional Fed rate increase in December and another in March. Markets are pricing a more aggressive path for the next 12 months; LSEG money-market data show roughly 100bps of cumulative Fed tightening priced over the next year. Strategists say uncertainty around the Fed's policy path, growth, corporate bond issuance and oil is lifting market expectations, but Morgan Stanley expects the Fed's actual tightening to fall short of current market pricing because key determinants of policy will only become clearer later this year.