Market Volatility Did the Work of Four Fed Rate Hikes: Morgan Stanley
- Financial conditions have tightened since Fed met in December
- Federal Open Market Committee to next meet Jan. 26-27
Dalio, Cohn Urge Yellen to Tread Carefully
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Volatility in financial markets since the Federal Reserve last month announced its first interest-rate increase in nearly a decade is having the same effect as four additional quarter-point hikes, according to Morgan Stanley.
"Financial conditions have tightened materially -- by our estimation the economic equivalent of four rate hikes," analysts led by New York-based Morgan Stanley Chief U.S. Economist Ellen Zentner said in a note to clients on Thursday.