UBS' Falconio Pushes Out Expectations for Fed Rate Cut

UBS strategist Leslie Falconio said pressure on the Fed to hike rates is easing after the US and Iran agreed to reopen the Strait of Hormuz, and she pushed her expected timing for a rate cut out to 2027. The move reflects a less urgent inflation and rate-hike backdrop as geopolitical risk in a key energy chokepoint subsides. The article is mainly analyst commentary, but it has some relevance for rate expectations and bond markets.

Analysis

UBS strategist Leslie Falconio said pressure on the Fed to hike rates is easing after the US and Iran agreed to reopen the Strait of Hormuz, and she pushed her expected timing for a rate cut out to 2027. The move reflects a less urgent inflation and rate-hike backdrop as geopolitical risk in a key energy chokepoint subsides. The article is mainly analyst commentary, but it has some relevance for rate expectations and bond markets.