UBS: Market Betting on Trump and the Fed to Bail Out, Expecting High Market Volatility to Persist

BlockBeats News, April 26th, UBS stated that the current market sentiment is broadly in line with its forecast, which is that tariffs will be reduced from their current level for the rest of the year, and the Fed will cut rates further this year. However, due to ongoing uncertainty around trade, the economy, and Fed policy, expected volatility remains high. Nevertheless, UBS believes that the U.S. stock market is attractive, with a year-end target of 5800 points for the S&P 500 Index. UBS's current base case forecast is for the Fed to cut rates by 75 to 100 basis points this year, but in the short term, the Fed's policy flexibility appears to be more limited as it must balance concerns about economic growth with risks of inflationary pressures. (FXStreet)