Aggressive Fed cuts could yield a new stock market bubble, UBS warns
Investing.com -- UBS analysts said in a note that aggressive rate cuts by the Federal Reserve could set the stage for a new stock market bubble.
They point out that the market expects a trough Fed Funds rate of 2.8%, while historically, rates have fallen below neutral levels during downturns. For equities, the analysts are cautious, noting that stock markets have already seen significant gains leading up to the anticipated rate cuts, leaving limited room for further upside without worsening economic news.
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