Federal Reserve Chairman Jerome Powell and the Fed are conflicted on economic data, says Morgan Stanley’s Global Head of Marco Strategy Matt Hornbach in this edition of the Bloomberg Intelligence FICC Focus Podcast. Hornbach joins host and BI Chief US Interest Rate Strategist Ira Jersey to discuss the G3+ central bank, currency and interest-rate outlook. Though the totality of recent US economic data has been very confusing, Hornbach thinks a clear trend will soon emerge. The Morgan Stanley base case is for the Fed to start cutting rates in September and do so at each meeting until mid-2025 before stopping. Such an outcome would cause the 10-year Treasury to rally to 3.75%, he said.