[Morgan Stanley: Rising U.S. Real Interest Rates Reflect Economic Growth and Federal Reserve Policy Debate] Morgan Stanley Wealth Management stated in a report that the rise in real interest rates appears to reflect drivers of economic growth and the Federal Reserve's debate surrounding policy changes. The institution noted: 'While commentary has focused on inflation risks and the Fed's priorities regarding its 2% target, there has been less discussion about how monetary policy might respond in a scenario where neutral rates or real interest rates are potentially higher.' Morgan Stanley Wealth Management indicated that this has implications for the concept of 'maintaining higher interest rates for a longer period,' which could mean reduced pricing expectations for the Fed's intervention in market put options and a shift toward the central bank being more data-driven rather than guidance-driven. The institution also stated that bond investors seem to be simultaneously reflecting expectations of reduced inflation risks driven by oil and an increased probability of rate hikes.