Rate cuts won't boost the stock market, UBS says: 'The Fed put is dead'

Key Points
"When it comes to U.S. stocks, the Fed put is dead," UBS equity strategist Francois Trahan says. "In the past 20 years, the so-called 'Fed Put' has failed to revive equities the way rate cuts did in the 1990s."When the Fed slashed rates in 2001 and 2008 to salvage the economy from recessions, U.S. equities did not rally following the rate reductions, UBS notes.Traders are now pricing in a 20% chance of a rate decrease on Wednesday and a nearly 90% of at least one cut in the July meeting.
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