"2024 Recession Spurs Surge in Fed Rate Cuts"

UBS predicts that the US economy will enter a recession in mid-2024, leading the Federal Reserve to implement significant interest rate cuts of 275 basis points, nearly four times higher than market expectations. UBS attributes this forecast to falling inflation and an economic slowdown. The bank expects rates to drop to 1.25% by the first half of 2025. However, this prediction contradicts UBS's previous outlook of a "roaring '20s" period characterized by higher GDP growth, inflation, bond yields, and interest rates.