UBS: The Federal Reserve's rate cut path remains unchanged but the urgency has diminished

SmartContractAuditor · 2026-02-12T12:52:46+00:00

UBS Global Wealth Management expects the Federal Reserve to cut interest rates by 25 basis points in June and September. Despite stronger-than-expected non-farm employment in January, falling inflation will support the rate cut plan. The currency market has adjusted its full-year rate cut expectation to 50 basis points and delayed it until July.

SmartContractAuditor

2026-02-12 12:52:46

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Odaily Planet Daily reports that UBS Global Wealth Management stated in a report that although the January non-farm payroll report was stronger than expected, evidence of falling 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 rate cut in June and September, which “will 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 currency market adjusted its expectation for the Fed’s total rate cuts for the year from about 60 basis points down to approximately 50 basis points, and delayed the next rate cut from June to July. (Jin10)

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