UBS Forecasts Rate Cuts and Continued Market Uncertainty

Investment firm UBS has released its economic outlook for 2025, predicting potential Federal Reserve rate cuts as a response to continued market uncertainty. Despite this volatility, UBS maintains a positive stance on US markets, projecting the S&P 500 to reach 5,800 points by year-end. The bank’s forecast anticipates significant shifts in the economic landscape as interest rates are lowered. While acknowledging potential volatility stemming from inflationary pressures, UBS predicts continued attractiveness for investors in US stocks.