UBS On-Air: Market Moves

The big event this week is the anticipated commencement of Fed rate cuts. Joining us to discuss outcome expectations, potential market response, and why focusing on the size of the cuts is not the most important issue, is Jason Draho, Head of Asset Allocation Americas, UBS Chief Investment Office. Host: Daniel Cassidy

Market attention is focused on the Federal Reserve meeting this week. A rate cut is clearly expected (and long overdue), as inflation pressures continue to fade in the US. However, a rate cut of more than 25bps seems unlikely—while the Fed is late in cutting rates, a larger move might be taken as a sign of panic. Higher frequency cuts rather than larger cuts seem most likely.

The US has more people employed, working longer hours, for more pay. Last Friday’s employment report essentially summarized a soft economic landing. There was evidence of slower hiring (without firing) in the employment details, also consistent with a soft landing. While the Federal Reserve is late in cutting rates, the delay has not yet done much economic damage.

The team discusses takeaways from the first presidential debate between Vice President Harris and former President Trump, CIO’s latest views on the state of the race, and investment implications. Featured speakers are Jason Chandler, Head of GWM Americas, Solita Marcelli, Chief Investment Officer Americas, and John Savercool, Head of the UBS US Office of Public Policy.

Our conversation revisits the progress of energy transitions across the globe, as growing global energy demand and regional geopolitics are making transitions more complex. We also spend time highlighting the technological innovations at work, along with review how to invest in these energy transitions. Featured is Jay Dobson, Energy & Utilities Analyst Americas, UBS Chief Investment Office. Host: Daniel Cassidy