© Reuters. UBS reiterates rate cut expectations in June after mixed jobs report
UBS economists maintained their view that the Federal Reserve will begin cutting interest rates in June, projecting a total of three cuts by the end of this year.
However, “some smoothing of the data will probably be necessary for that to happen,” UBS analysts said in a note on Friday.
His comments come after the latest US jobs report revealed a significant increase in non-farm payrolls for February, with the US economy adding 275,000 jobs, exceeding the 200,000 forecast.
Despite this growth, revisions over the past two months reduced the numbers by 167,000, leading to a three-month average of 264,000 jobs, indicating a slight decrease from the previous 289,000.
However, the report also contained weaker data: the unemployment rate rose to 3.9% and a modest 0.1% increase in average hourly earnings.
Looking ahead, markets are likely to focus on February consumer price index (CPI) data, which UBS expects to demonstrate “another strong monthly rise.”
