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Another major Wall Street bank says there will be no rate cut soon, despite what market wants

June 12, 2019

Via: CNBC

As the market’s conviction of a rate cut keeps growing firmer, another Wall Street bank came out defying the consensus.

UBS joined Goldman Sachs in warning that the market’s expectation for a rate cut is not realistic because recent economic data have been “mixed,” rather than weak, which don’t warrant an easing of monetary policy anytime soon.

“Market expectations for 100 basis points of rate cuts by 2020 look exaggerated, in our view,” Mark Haefele, UBS’ global chief investment officer, said in a note on Wednesday. “While the Fed may eventually be forced to support growth, especially if the ongoing trade dispute with China inflicts lasting damage on capital spending and employment, we don’t expect a rate cut soon.”

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