Fed Prepares for Rate Hikes Amid Strong US Jobs Report

The Federal Reserve is expected to increase interest rates twice this year due to a strong U.S. jobs report and rising inflation risks.

UBS has revised its forecast from no change, citing signs of a resilient labor market and increasing inflation concerns.

Fed Chair Kevin Warsh's hawkish statements at the Jackson Hole symposium have also contributed to the expectation of tighter monetary policy.

The robust August employment data, which exceeded projections, has led market analysts and major financial firms like Citigroup and Macquarie to update their rate forecasts.