Fed could deliver 100bps in cuts by end of year: UBS Private Wealth Management's Angie Newman

UBS Private Wealth Management's Angie Newman sees the Fed delivering 100bps in cuts by the end of the year.

Newman said that the Fed is likely to cut rates by 50bps in July and 25bps in September and November.

UBS Private Wealth Management's Angie Newman said Tuesday that she expects the Federal Reserve to cut interest rates by 100 basis points (bps) by the end of the year.

Newman said in a note to clients that the Fed is likely to cut rates by 50bps in July and 25bps in September and November.

"We believe that the Fed is likely to cut rates by 100bps by the end of the year," Newman wrote. "This is because we believe that the economy is slowing down and that the Fed will need to ease monetary policy in order to support growth."

Newman's forecast is more aggressive than the market consensus, which is currently pricing in only 75bps of cuts by the end of the year.

However, Newman said that she believes that the Fed will need to cut rates more aggressively in order to prevent the economy from slipping into a recession.

"We believe that the risks to the economy are tilted to the downside," Newman wrote. "We believe that the Fed will need to cut rates more aggressively than the market currently expects in order to prevent the economy from slipping into a recession."

Newman's comments come as the Fed is widely expected to cut rates at its next meeting in July.

The Fed has already cut rates twice this year, by 25bps in March and 25bps in June.

The Fed is expected to cut rates again in July in order to support the economy amid concerns about the trade war between the United States and China.

However, Newman's forecast suggests that the Fed may need to cut rates even more aggressively in order to prevent the economy from slipping into a recession.