Morgan Stanley has changed its forecast regarding a potential Federal Reserve interest rate cut next month. In a note dated Aug. 26, Morgan Stanley Chief Economist Michael Gapen joined a growing trend of global brokerages changing forecasts. This is due to Fed Chair Jerome Powell's recent shift in tone toward rising labor market risks.

Interest rates on long-term mortgages might not fall as fast as some might anticipate should the Federal Reserve cut its benchmark rate at its next policy meeting in September, according to Wells Fargo Investment Institute.