Morgan Stanley’s Wilson Says End of Fed Tightening Nearing
- Indicators suggest Fed pivot sooner rather than later: Wilson
- Strategist sees S&P 500 rallying to 4,150 points, a 6% advance
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The end of the Federal Reserve’s campaign to raise interest rates is approaching, according to Morgan Stanley strategist Michael Wilson, who until recently was a prominent stock market bear who correctly predicted this year’s slump in equities.
Indicators including the inversion of the yield curve between 10-year and three-month Treasuries -- a recession indicator with a perfect record -- “all support a Fed pivot sooner rather than later,” Wilson wrote in a note on Monday. “Therefore, this week’s Fed meeting is critical for the rally to continue, pause or even end completely.”