UBS: US retail sales data may affect the extent of the Fed's interest rate cuts, and it is expected that the interest rate will be cut by 100 basis points this year

Odaily Odaily News: Before the Federal Reserve's interest rate decision, the U.S. retail sales data, known as the "horror data", will be released. UBS said that they are closely watching retail sales and industrial production data, and the weakness of these data may affect the Fed's decision to cut the federal funds rate by 50 basis points instead of 25 basis points. UBS said that U.S. inflation has slowed to the point where interest rates can be cut. The agency outlined their "basic expectation" that the Federal Reserve will cut interest rates by 100 basis points for the rest of the year and another 100 basis points in 2025. UBS added that as the pace of rate cuts accelerates, the dollar will fall further and gold will rise further. (Jinshi)