MS · News · 20260922N

Interest Rate Environment

MORGAN STANLEY · 2026-09-22 · Importance 13 · Surprise 6

The Federal Reserve recently raised its policy rate by 25 basis points to combat inflation. Third-party reporting linked the move to concerns about slower loan demand, higher borrowing costs, and potential credit deterioration for financial institutions, including Morgan Stanley. The rate increase also contributed to a decline in several financial stocks on September 22, 2026.

Key facts

• Morgan Stanley's stock traded down following the Federal Reserve's recent 25 basis point rate hike. source
• Lindsay Bofman was Morgan Stanley's head of US rates sales and spent eight years at Morgan Stanley. source