UBS: The Fed is expected to be cautious this week and avoid being too dovish

Brian Rose, a senior U.S. economist at UBS Financial Services, said that the Fed's interest rate hikes appear to be over as inflation has eased faster than expected. But inflation is still too high and the labor market is still too tight for the Fed to consider cutting rates anytime soon. At this week's FOMC meeting, the Fed is expected to proceed cautiously and avoid sounding overly dovish, as markets have priced in multiple rate cuts so far. On the dot plot, the 2024 "point" is expected to be lowered, but it will still be higher than the market price.