UBS Predicts Steep Fed Rate Cuts to 1.25% by 2025 Due to Recession Starting Mid-2024
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UBS predicts the US will enter a recession in mid-2024, leading the Fed to slash interest rates by 275 basis points.
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This would be a much steeper rate cut than the 75 basis points the market currently expects.
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UBS forecasts the cuts to bring rates down to 1.25% by early 2025.
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The predicted recession and slowing inflation are expected to drive the Fed's aggressive easing.
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The forecast seems at odds with another recent UBS prediction of a "roaring '20s" US economy.