Morgan Stanley Says Fed Would Look Through Iran War in Any 2026 Rate Hike
Updated
Updated · Bloomberg · Jun 4
Morgan Stanley Says Fed Would Look Through Iran War in Any 2026 Rate Hike
3 articles · Updated · Bloomberg · Jun 4
Summary
Andrew Sheets said the Federal Reserve would probably discount Iran war-driven price effects if officials consider raising rates later in 2026.
Morgan Stanley sees the conflict as primarily a growth shock, not an inflation shock, meaning it is unlikely to be the factor that pushes policymakers toward a hike.
That view suggests any Fed tightening this year would need to be driven by broader underlying inflation or domestic economic data rather than war-related energy moves.