Morgan Stanley are now looking for a higher Fed interest rate peak, around4%

Responses to the Federal Open Market Committee (FOMC) 75bp rate hike on Wednesday continue.

ICYMI:

• Forexlive Americas FX news wrap: Fed hikes 75 basis points but relief rally emerges

Morgan Stanley now say they expect a 'steeper' path ahead for Fed rate hikes for the remainder of 2022, and, by the end of this year:

• to a higher peak rate around 4%

Looking further out, MS:

• The key question now is how quickly do they stop hiking rates, and prepare for cuts should they see a material slowing