UBS: Economic data will continue to dominate the Fed's future interest rate decisions
The Federal Reserve's next interest rate move will be guided by economic data, according to UBS. While major global markets have reacted negatively to the changes in the Fed's easing cycle next year, the Fed will continue to monitor economic conditions and various data before taking any action. UBS said: "We believe the Fed remains data-dependent, and future economic indicators will continue to play a key role in determining the Fed's next move." The Fed's preferred inflation gauge, the PCE inflation, will be a critical factor in shaping the central bank's policy, and the data will be released this Friday. However, UBS expects inflation to slow in the coming months, which could impact the Fed's policy outlook. In addition, employment data will remain an important factor as the Fed assesses the strength of the labor market and the overall resilience of the economy.
