Morgan Stanley economists have postponed their expectations for the first interest rate cut by the Federal Reserve from July to September, citing a "lack of progress" in inflation. They still expect three interest rate cuts this year, each by 25 basis points. Economists such as Ellen Zentner, Sam Coffin, and Diego Anzoategui stated in their report that the lack of progress since the beginning of the year means that Federal Reserve policymakers need more time to be confident that inflation is consistently falling towards their 2% target. They expect that the core PCE, which is equivalent to three and six months' annual rates, will be "close to or below" 2% by the end of the year. In this case, waiting until after September to cut interest rates "will be too late." (Finance Associated Press)