Morgan Stanley’s view that Fed funds could drop as low as 2.25% by 2025–26 is even more bullish than consensus, and that kind of dovish shift would be rocket fuel for growth stocks and tech. Lower discount rates plus AI momentum could drive another leg higher in the Nasdaq if this scenario plays out.
I still like the bond trade as a hedge, but my bigger takeaway is equities stand to benefit most from faster easing. For me, this is a market to stay invested in leaders, especially in tech, rather than waiting on the sidelines. The Fed is finally tilting in favor of growth again.
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