UBS expects the Federal Reserve to resume rate cuts later this year, despite its recent decision to hold rates steady. The U.S. central bank kept rates unchanged last week for the first time since beginning its easing cycle in September, citing persistently elevated inflation and a resilient labour market.
However, UBS analysts anticipate that inflation will moderate toward the Fed’s 2% target by mid-year, creating conditions for further rate reductions. Fed Chair Jerome Powell also indicated that monetary policy remains “meaningfully” above the neutral rate, suggesting room for additional easing.
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Vice Chair Jefferson made the case that policy would be restrictive even with Fed Funds 100bp lower:
Fed's Jefferson says happy to keep Fed Funds on hold at current rate This article was written by Eamonn Sheridan at www.forexlive.com.Hence then, the article about ubs expect the fed to resume rate cuts later in 2025 was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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