June 16 (Reuters) – UBS Global Wealth Management pushed back its timeline for U.S. Federal Reserve rate cuts to March and June \u200c2027 and no longer expects any easing this year, citing \u200cexpectations of a hawkish tone at this week\u2019s policy meeting.<\/p>\n
The wealth manager expects 25 basis \u200bpoint (bp) reductions each in March and June next year, compared to their previous forecasts of cuts in December 2026 and March 2027.<\/p>\n
The Fed’s policy decision is due on Wednesday\u2014the first under new chair Kevin Warsh and policymakers \u200care widely expected to keep \u2060rates steady.<\/p>\n
“Despite the new Fed chair’s previously stated more dovish views, we expect a more hawkish tone to the \u2060Fed\u2019s meeting, both in the central bank\u2019s statement and in the dot plot,” analysts at UBS Global Wealth Management said in a note dated June \u200b15.<\/p>\n
The Fed \u200bmeeting also follows U.S. President Donald \u200bTrump’s announcement on Monday that \u200cthe United States and Iran had reached a preliminary agreement to end their conflict, which has brought some relief to global financial markets.<\/p>\n
“Leading central banks will avoid making a hasty pivot back toward more dovish language in response to the US-Iran deal,” UBS said, with a string of \u200ccentral bank meetings slated this week, including \u200bthe Bank of England.<\/p>\n
“Instead, they (central banks) are \u200blikely to remain cautious as \u200bevents unfold and as incoming data over the coming \u200cmonths reveals whether the energy shock \u200bis triggering second \u200bround inflation shocks.”<\/p>\n
Major global brokerages expect no Fed easing this year, with Citigroup and Wells Fargo being outliers.<\/p>\n
Traders are betting on a \u200broughly 42% probability for \u200cthe Fed to hike rates by 25 bps in December this \u200byear, according to the CME FedWatch tool.<\/p>\n
(Reporting by Kanishka Ajmera \u200bin Bengaluru; Editing by Ronojoy Mazumdar)<\/p>\n","protected":false},"excerpt":{"rendered":"June 16 (Reuters) – UBS Global Wealth Management pushed back its timeline for U.S. Federal Reserve rate cuts…\n","protected":false},"author":2,"featured_media":85196,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[129],"tags":[2464,30670,16175,43500,223,19678],"class_list":["post-85195","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ubs","tag-global-wealth-management","tag-kevin-warsh","tag-meeting","tag-u-s-federal-reserve","tag-ubs","tag-ubs-global-wealth-management"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/116759349648314135","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/85195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=85195"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/85195\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/85196"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=85195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=85195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=85195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}