Alex Wong/Getty Images
- The Federal Reserve will slash interest rates by an eye-popping 275 basis points next year, according to UBS.
- That's nearly four times as steep a cut as the market is expecting.
- UBS expects a mid-2024 recession to encourage the central bank to start easing.
The US economy will slip into recession next year – and that'll lead to the Federal Reserve bringing in steep interest-rate cuts, according to one top European bank.
UBS said back in November that it's expecting the Fed to respond to falling inflation and an economic slump by slashing rates by an eye-popping 275 basis points – nearly four times the 75-basis-point reduction the market is currently expecting, per the CME Group's Fedwatch tool.