UBS says the adjustments from the FOMC/Dot plot/Powell were surprisingly dovish.
However, the three rate cuts forecast for 2024 is not really an easing of policy. Due to high inflation real interest rates will be kept more or less stable, even as US inflation falls. UBS also not that quantitative policy continues to tighten, and regulatory policy may also constrain activity.
Reasonable points.
For markets , though, its all about lower rates than otherwise and hence the outsize reactions in 'risk' assets.
