UBS: Fed's Rate Cut Path Unchanged, Urgency Diminished

ChainCatcher News, according to Jinse Finance, UBS Global Wealth Management stated in a report that although the January non-farm payrolls report was stronger than expected, evidence of declining U.S. inflation in the coming months should allow the Federal Reserve to maintain its plan for further rate cuts. Chief Investment Officer Mark Haefele said that the institution's baseline scenario remains a 25 basis point rate cut each in June and September, which will create a favorable environment for stocks, bonds, and gold. Data from the London Stock Exchange shows that after the release of the non-farm data, the money market lowered its expectation for the total Fed rate cuts for the year from about 60 basis points to about 50 basis points, and postponed the pricing of the next rate cut from June to July.