Markets are pricing in at least one more interest-rate increase from the U.S. Federal Reserve this year following hotter inflation data and a more hawkish tone from policymakers. Consumer prices rose 3.5% in the year through June, less than markets expected and a slowdown from 4.2% in May, which was the highest annual increase in three years. Meanwhile, new Fed Chair Kevin Warsh has emphasized that restoring price stability is his top priority, and the median projection from Federal Open Market Committee (FOMC) participants points to one rate hike in 2026. Morgan Stanley Research, however, sees a different path. “We ... (full story)