Outlook for the Federal Open Market Committee (FOMC) from UBS.
Analysts at the bank argue that the December labor report, set to be released this Friday, and next week's inflation data will offer further insights into the U.S. economy. Although the Federal Reserve is unlikely to lower interest rates at its early 2025 policy meetings, UBS anticipate that upcoming data will reflect slowing inflation and a cooling labor market. This could pave the way for the Fed to begin cutting rates again by its June meeting. Consistent with the Fed's latest economic projections, UBS expect a second rate cut to follow in the third quarter of the year.
