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UBS: Still expects the Federal Reserve to cut interest rates by 50 basis points later this year

UBS: Still expects the Federal Reserve to cut interest rates by 50 basis points later this year

金十金十2026/04/17 07:29
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Golden Ten Data reported on April 17 that a UBS research report indicates the Federal Reserve remains on a trajectory toward further easing. Federal Reserve Chair Powell recently downplayed the necessity of tightening monetary policy due to rising energy prices, noting that policymakers often "look through" supply shocks such as surging oil prices, especially when inflation expectations remain firmly anchored. While the Federal Reserve is still seeking further evidence of sustained declines in core inflation before enacting another round of easing measures, we still anticipate a 50 basis point rate cut later this year. Given that US Treasury yields are still far above pre-conflict levels, we believe there is ample room for them to move lower, and our year-end targets for two-year and ten-year Treasury yields are 3.25% and 3.75%, respectively.
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