UBS Warburg Predicts Two More Fed Cuts

Jan. 13, 2005
By John S. McClenahen Although commodity prices, often a leading economic indicator, seem to be bouncing back from 15-year lows, the U.S. recession is not yet over, and the Federal Reserve likely will lower short-term interest rates this month and ...
ByJohn S. McClenahen Although commodity prices, often a leading economic indicator, seem to be bouncing back from 15-year lows, the U.S. recession is not yet over, and the Federal Reserve likely will lower short-term interest rates this month and next, says UBS Warburg LLC, New York. "We expect the employment report on Friday [Dec. 7] to show the unemployment rate up another 0.3 point to 5.7% in November," says chief U.S. economist Maury Harris. "Historically, the Fed does not stop easing until the unemployment rate stops rising." With several economists forecasting jobless rates above 6% in early 2002, a policy change by the rate-setting Federal Open Market Committee (FOMC) is likely to be several months away. In the meantime, Harris and his Warburg colleagues expect the FOMC to lower the influential federal funds rate by 25 basis points to 1.75% at its Dec. 11 meeting and then by another 25 basis points to 1.5% on Jan. 30, the second day of the panel's first meeting in 2002.

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!