UBS expects the Federal Reserve to begin cutting rates in September, with a total reduction of 75 basis points for the year.

According to reports from Jin Ten Data, the UBS Wealth Management Investment Director's Office stated that the United States may avoid a full recession this year, but slowing growth and a weak labor market could prompt the Federal Reserve to resume interest rate cuts in the coming months. It is expected that the Federal Reserve may begin cutting rates in September, with a total reduction of 75 basis points for the year.

Although the peak of pessimism triggered by Trump's trade policies may have passed, ongoing uncertainty could still exacerbate market volatility. Current high bond yields help in seeking lasting income. Historical data shows that as the holding period extends, the probability of bonds outperforming cash increases. UBS maintains a positive outlook on high-rated and investment-grade bonds, expecting such bonds to achieve mid-single-digit returns over the next 12 months.