"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," says Mark Haefele, UBS' global chief investment officer.
The bank cited unemployment rate "at a multi-decade low of 3.6%," "robust demand for workers" and high consumer confidence. UBS joined Goldman Sachs in warning that the market's expectation for a rate cut is not realistic because recent economic data has been "mixed," rather than weak, which don't warrant an easing of monetary policy anytime soon.
Has anybody articulated a legitimate reason for a cut? Maybe to take on more cheap debt for buybacks on Trump orchestrated stock market dips. Insider activity anyone.
yeah, lower rate not good for banking business, right? $MS already warned on their 2QTR trading revenues: $UBS, $C $GS next?