UBS: Expects the Federal Reserve to cut interest rates by 50 basis points later this year
According to Jin Shi's report, UBS's research indicates that the Federal Reserve is still on a path of further easing. Federal Reserve Chairman Powell recently downplayed the necessity of tightening monetary policy due to rising energy prices, emphasizing that policymakers typically "ignore" supply shocks such as soaring oil prices.
UBS expects that the Federal Reserve will cut interest rates by 50 basis points later this year and believes that U.S. Treasury yields have ample room to decline, with year-end targets of 3.25% for the 2-year Treasury yield and 3.75% for the 10-year Treasury yield.
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