UBS Expects Fed Won't Cut Rates Until 2027, May Start in Q1 or Q2

According to UBS Global Wealth Management, the Federal Reserve is expected to formally abandon its accommodative bias at this week's FOMC meeting, signaling a more hawkish outlook. However, UBS strategist Falconio expects the next move will be a rate cut, with timing likely in 2027's first or second quarter. She noted the Fed will hold steady through 2026 to assess ongoing economic growth and labor market dynamics before acting.
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