UBS says a Federal Reserve policy pivot is “on the horizon”

Main points from UBS on their outlook for the US Federal Reserve:

• policy pivot on the horizon, UBS base case is a September 25bp rate cut

Citing:

• UBS expect the US continues to head toward a soft economic landing
• economy has entered a period of below-trend growth, growth has slowed to a modest pace
• steadily rising unemployment rate is also consistent with below-trend growth
• see little evidence of an imminent hard landing
• broad disinflation is in place

FOMC meet on the 30th and 31st:

• statement due at 1400 US Eastern time (1800 GMT)
• Federal Reserve Chair Powell’s press conference follows a half hour later

This article was written by Eamonn Sheridan at www.forexlive.com.