The Fed will start cutting rates this summer as core PCE inflation will drop to 2.1%, says UBS' global chief economist

Jan 10 2023 by Business Insider

 
Fed Chair Jerome Powell.

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The Fed could start cutting rates as early as this July, according to UBS.  The Swiss bank's global chief economist said US core PCE inflation is likely to drop to 2.1% this year, calling for a Fed pivot.  "Of course, if you gave our forecast to the Fed, they would have a very different reaction function," he said. 

The Federal Reserve could start reversing its interest-rate hikes as early as this summer, according to UBS. 

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