The bank expects that the Fed will cut interest rates twice in 2024, as the bank changed its forecasts after the release of yesterday's inflation data represented by the Consumer Price Index, which rose from 3.4% to 3.5%, while expectations indicated a decline of 3.2%.
UBS now expects the Fed to start cutting interest rates in September versus June.
The Fed is now expected to cut interest rates twice in 2024, by 25 basis points each quarter, he said.
It is worth noting that the markets are now pricing that the European Central Bank will cut the interest rate next June by about 92%.
It also raises the possibility that the Bank of England will cut the interest rate by 60% by June.
The Fed is expected to cut interest rates in June by no more than 20%.
