UBS: Still expects the Federal Reserve to cut interest rates by 50 basis points later this year

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ME News Report, April 17 (UTC+8), UBS research report pointed out that the Federal Reserve remains on a path of further easing. Federal Reserve Chairman Powell recently downplayed the need to tighten monetary policy due to rising energy prices, noting that policymakers often "ignore" supply shocks such as soaring oil prices, especially when inflation expectations remain firmly under control. Although the Fed is still seeking further evidence of a sustained decline in core inflation before implementing another round of easing, we still expect a 50 basis point rate cut later this year. Given that U.S. Treasury yields are well above pre-conflict levels, we believe there is ample room for downside, with our year-end targets for the 2-year and 10-year Treasury yields at 3.25% and 3.75%, respectively. (Source: Jin10)
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AuroraStone
· 2h ago
The relaxed track hasn't changed, but the accelerator isn't fully pressed.
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ToBeHonest,You'llLose
· 5h ago
Pre-conflict level comparison, this anchoring is interesting
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ChecksumSmile
· 6h ago
Energy price smoothing, the old trick again
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RugProofMaybe
· 6h ago
The 10-year term at 3.75%, the portfolio allocation can be adjusted.
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GateUser-ced0257a
· 6h ago
Controlled inflation expectations are the key, everything else is noise.
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ReflectionsOnTheStreetCorner
· 6h ago
Two interest rate cuts this year, 25 basis points each time, the script is ready.
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GlassFishTankArbitrage
· 6h ago
There is ample room in government bond yields; this statement is priceless.
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CoralSlippage
· 6h ago
Core inflation isn't coming down; easing is just talk.
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Cross-SectionOfSucculent
· 6h ago
UBS's report timing is spot on.
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Stop-LossLineForTheEveningGlow
· 6h ago
Will the bond bull market continue with the 2-year term at 3.25% at the end of the year?
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