UBS: The Federal Reserve is expected to cut interest rates by 75 basis points in the first quarter of next year

ChainCatcher news, according to Jinshi reports, Hu Yifan, the Investment Director for Greater China and Head of Macroeconomics for Asia Pacific at UBS Wealth Management, stated that looking ahead, under the baseline scenario, the Federal Reserve is expected to further cut interest rates by 75 basis points by the first quarter of 2026. It is anticipated that the Federal Reserve will continue to prioritize the weakness in the labor market over the potential temporary rise in inflation. In a downside scenario, if the weakness in the labor market proves to be more severe or prolonged, the Federal Reserve may cut rates by 200-300 basis points, with rates potentially falling to 1-1.5%.