UBS predicts that the Federal Reserve will cut interest rates by 75-100 basis points for the remainder of 2025

According to a report by Jinshi, UBS pointed out that in terms of inflation, it is expected that by the end of this year, the tariffs announced by the new government so far may increase prices for American consumers by about 2 percentage points, provided that only a portion is passed on to end consumers. Although higher inflation will pose a challenge to the Federal Reserve, we believe that a significant slowdown in economic growth and potential weakness in the labor market will mean that the Fed will cut interest rates by 75-100 basis points for the remainder of 2025