UBS: Fed's Rate Cut Path Unchanged but Urgency Diminishes

Odaily News UBS Global Wealth Management noted in a report that despite the stronger-than-expected January non-farm payrolls report, evidence of declining US inflation in the coming months should allow the Federal Reserve to maintain its plans for further interest rate cuts. Chief Investment Officer Mark Haefele stated that the institution's baseline scenario remains a 25 basis point cut each in June and September, which "would create a favorable environment for stocks, bonds, and gold." Data from the London Stock Exchange shows that after the non-farm data release, money markets have lowered their expectations for the total magnitude of Fed rate cuts this year from the previous approximately 60 basis points to about 50 basis points, and have pushed back the pricing of the next rate cut from June to July. (Jin10)