MORGAN STANLEY: FED TO HOLD DESPITE WARSH’S HAWKISH TONE Morgan Stanley expects the Fed to keep rates unchanged, despite Chair Kevin Warsh’s hawkish Jackson Hole speech. The bank forecasts August core CPI at +0.23% MoM and core PCE at +0.20%, supporting patience. PCE revisions could also lower annual core inflation to around 3.1% from 3.3%. Bottom line: Warsh’s rhetoric likely preserves policy flexibility rather than signaling an imminent hiking cycle.(*Walter Bloomberg)