UBS says Trump's calls for interest rate cuts could increase uncertainty

UBS* warned that Trump's renewed calls for interest rate cuts could further undermine confidence in the Federal Reserve's independence.

In a note to clients, UBS analysts said the looming slowdown in the US economy is driven by rising uncertainty rather than monetary tightening.

UBS notes that businesses and households typically weigh the cost of borrowing against their confidence in the future.

In an environment of growing uncertainty, even modest borrowing costs may not be enough to stimulate spending or investment.

**UBSGroup AG is the largest Swiss financial holding company, providing a wide range of financial services around the world. The place of registration of the bank and the location of its head office is Zurich.

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