October 2025 | Chief Investment Office GWM | Investment research 2 UBS House View | October 2025
Investing as the Fed cuts rates
October 2025 | Chief Investment Office GWM | Investment research 2 UBS House View | October 2025
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This report was published
on 19 September 2025
Ulrike Hoffmann-Burchardi
Authors (in alphabetical order)
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October 2025 | UBS House View 3
Markets continue to set new records as solid corporate earnings
and expectations for additional Federal Reserve rate cuts bolster sentiment. The Fed’s decision to lower rates by 25 basis points at its September meeting was driven by signs of labor market weak- ness and subdued inflation pressures. Historically, rate cuts during non-recessionary periods have supported equity market perfor- mance. However, we remain watchful of potential economic uncertainties and inflation risks.
While price pressures could increase in the coming months, we
believe the Fed will prioritize recent labor market weakness over what is likely to be a temporary rise in inflation. We expect the
