UBS Forecasts Fed Rate Cuts Amid Softer Growth

UBS expects the Federal Reserve to cut rates by 50 basis points by year‑end as inflation cools and labor demand weakens.
Nominee Kevin Warsh told the Senate Banking Committee he will uphold Fed independence, propose an inflation framework and cut post‑FOMC press briefings.
UBS says the Fed board will turn dovish this year, with policymakers favoring a rate near 3%, making market pricing too hawkish.
UBS expects further easing to support equities and high‑quality bonds over the medium term.