UBS are citing the US slowdown to potentially arrive sooner than expected
- Which, they say, opens the door to a Fed funds rate cut in October.
(Federal Open Market Committee meeting is October 29 and 30)
Citing trade tension with China - a substantial shock to the economy – tariffs causing a slump in private demand
- tarfifs weakening employment in manufacturing, retail
Following that the bank expects further cuts in:
- January, March and June 2020
- And also say that due to the run of recent data there is risk is to the downside for the Fed to cut more.