UBS: Fed Likely to Cut Rates by Another 75 Basis Points in Q1 Next Year

BlockBeats News, September 18th: Helen Zhu, Managing Director and Head of China Equities and Asia Pacific Macro at UBS Wealth Management, stated that looking ahead, under the baseline scenario, the Federal Reserve is expected to cut rates by another 75 basis points by the first quarter of 2026. It is anticipated that the Fed will continue to prioritize the weakness in the labor market rather than the possibility of a temporary inflation surge.

In a downside scenario, if the weakness in the labor market proves to be more severe or prolonged, the Fed could cut rates by 200-300 basis points, potentially pushing rates as low as 1.0-1.5%. (FXStreet)