Message: F0MC Meeting and potential rate cute in July, Sent (EFTA00239642)

Message From: Sent: To: CC: Casriel, Lyle 6/20/2019 5:26:54 PM 'G Max' I j; Stackman, Scott I I; Tomkiewicz, Jessica II; McNamara, Sean [ j; Klein, Matthew I I Subject: F0MC Meeting and potential rate cute in July Attachments: US Economic Perspectives_Forecast change.pdf Scott, Hope you are well. Given our overwhelmingly patient view on rates for funding the munis, we wanted to provide you with an update on UBS's thoughts around a potential rate cut. We have included a few bullet points below as well as attached our most recent piece on the FOMC meeting. The good news is cash is now yielding more than bonds. The FOMC statement and presser point to 50 bps in cuts-probably July In the press conference, Powell noted that even the FOMC participants that did not call for a cut say that the case for a cut has risen. That view adds to the likelihood of a rate cut this year. The bar now is low for a rate cut. Powell did say in the presser that they look forward to learni