(Reuters) – UBS Global Wealth Management said it now expects the U.S. Federal Reserve to start lowering interest rates in June, compared to its prior view of cuts beginning in May.
The brokerage also expects the Fed to deliver 75 basis points (bps) of cuts in 2024 versus its previous forecast of 100 bps.
“Given the upside surprises to both payrolls and inflation, we now expect the Fed to wait a bit longer before cutting rates, making its first 25 basis point cut in June rather than in May,” the economists at the brokerage said in a note dated Feb. 20.
(Reporting by Roshan Abraham in Bengaluru; Editing by Arun Koyyur)