UBS: The Federal Reserve's rate cut path remains unchanged, urgency diminishes

MarsBitNews · 2026-02-12T12:54:58+00:00

UBS report indicates that despite strong non-farm employment data in January, the expected decline in U.S. inflation will support the Federal Reserve's interest rate cuts. It is expected that there will be a 25 basis point cut in June and September, benefiting the stock, bond, and gold markets. The currency market has also lowered its full-year rate cut expectation to 50 basis points.

MarsBitNews

2026-02-12 12:54:58

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Mars Finance reports that according to Jintiao, UBS Global Wealth Management stated in a report that although the January non-farm payroll report was stronger than expected, evidence of falling U.S. inflation in the coming months should enable 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 cut in June and September, which would create a favorable environment for stocks, bonds, and gold. Data from the London Stock Exchange shows that after the non-farm payroll data was released, the market’s expectation for the Federal Reserve’s total rate cuts for the year was revised down from about 60 basis points to approximately 50 basis points, and the timing of the next rate cut was pushed from June to July.

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