Central Banks

UBS says a Federal Reserve policy pivot is “on the horizon”

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Main points from UBS on their outlook for the US Federal Reserve:

  • policy pivot on the horizon, UBS base case is a September 25bp rate cut

Citing:

  • UBS expect the US continues to head toward a soft economic landing
  • economy has entered a period of below-trend growth, growth has slowed to a modest pace
  • steadily rising unemployment rate is also consistent with below-trend growth
  • see little evidence of an imminent hard landing
  • broad disinflation is in place

FOMC meet on the 30th and 31st:

  • statement due at 1400 US Eastern time (1800 GMT)
  • Federal Reserve Chair Powell’s press conference follows a half hour later

This article was written by Eamonn Sheridan at www.forexlive.com. Source