UBS on the Federal Open Market Committee (FOMC) fee minimize and outlook for US equities.
In abstract:
- With indicators that inflation is being introduced beneath management, the Federal Reserve can now shift its focus to fostering job development and financial enlargement whereas managing the chance of a recession.
- UBS proceed to anticipate 100 foundation factors of fee cuts in 2024.
- UBS add that the latest dot plot aligns with their forecast for the tempo of financial easing by means of the top of 2025.
- On shares, UBS analysts say that traditionally inventory markets have carried out properly when the Fed diminished rates of interest with out the financial system being in a recession, and so they anticipate the identical final result this time. Their outlook stays that the S&P 500 will attain 5,900 by the top of this 12 months and rise to six,200 by mid-2025.
This text was written by Eamonn Sheridan at www.forexlive.com.
