UBS says easing US inflation should keep the Fed on track for rate cuts despite strong jobs data; expects two 25bps cuts in June and September, supporting equities, bonds, and gold

UBS says easing US inflation should keep the Fed on track for rate cuts despite strong jobs data; expects two 25bps cuts in June and September, supporting equities, bonds, and gold.

UBS's expectation of easing inflation suggests the Fed may remain on its path toward rate cuts, even amid solid jobs data. If accurate, this could bolster risk assets like equities and bonds while supporting the attractiveness of gold as an inflation hedge, reflecting a dovish stance that contrasts with recent strong economic indicators.