Svmuu News UBS A research report notes that Federal Reserve remains on track for further easing. Federal Reserve Chair Jerome Powell recently downplayed the need to tighten monetary policy due to rising energy prices, noting that policymakers typically “overlook” supply shocks such as surging oil prices, especially when inflation expectations remain firmly under control.Although Federal Reserve is still seeking further evidence of a sustained decline in core inflation before implementing further easing, we still expect a 50-basis-point rate cut later this year.Given that U.S. Treasury yields are well above pre-conflict levels, we believe there is ample room for them to fall, and our year-end targets for 2-year and 10-year Treasury yields are 3.25% and 3.75%, respectively. (Jin Shi)