Morgan Stanley Economist Forecasts 'Hard Landing' Recession Due to High Rates

• Hard landing recession is guaranteed due to full impact of Fed rate hikes not yet hitting economy, says Morgan Stanley's chief economist Ellen Zentner

• High interest rates to blame; rates could stay higher for longer

• Signs of financial stress showing - corporate defaults at highest since pandemic, bank lending fallen last 3 quarters

• Inflation likely to reaccelerate in Q1 after January CPI came in hotter than expected

• Markets now pricing in only 39% chance of 100 basis point or more in Fed rate cuts by end of year, versus more cuts previously expected