Morgan Stanley Predicts Fed Will Hold Rates Steady Until 2026: Crypto Implications

Morgan Stanley has forecasted that the Federal Reserve will keep interest rates unchanged through the remainder of 2026, citing persistent inflation pressures and a still-resilient economy.

The bank’s analysts believe Chair Warsh and the FOMC will prioritize inflation control over early rate cuts.This “higher for longer” outlook could maintain pressure on risk assets, including Bitcoin and equities, by keeping borrowing costs elevated and liquidity tighter than many investors had hoped.

How do you think prolonged high rates will affect crypto performance in the second half of 2026 and into 2027?