As Powell begins his testimony...UBS doubles....>

FED: As Powell begins his testimony...UBS doubles down on its 50bps July cut

call (as Morgan Stanley did earlier today):

- "Today's testimony affirms our read of the June FOMC meeting. We maintain our

call of a 50bp cut in July. At the June FOMC, Chair Powell was clearly looking

to cut rates 50bp at the July meeting... no cut at all or a smaller 25bp cut are

both on the table in our minds. In fact, the median FOMC participant did not

envision a rate cut in 2019. To cut rates, Powell needs to bring a subset of

those participants to his view."

- "In stark contrast to both his own press conference in May and the

staff-prepared Monetary Policy Report, Powell's testimony omitted the

"transitory" characterization of recent weak inflation."