UBS Predicts Two US Rate Hikes Following Strong Jobs Report
UBS, a global financial services company, has revised its interest rate forecast in light of the strong US jobs report released on Friday. According to UBS, the Federal Reserve will raise interest rates by 25 basis points each in September and December 2026.
The jobs report showed that US employers added 162,000 jobs in August, beating expectations. The unemployment rate held steady at 4.1%. This strong labor market data has led UBS to revise its earlier forecast of no policy change this year.
Citigroup and Macquarie have also revised their interest rate forecasts following the employment data. Hawkish remarks from Fed Chair Kevin Warsh at the Jackson Hole symposium in August, along with rising inflation risks and strong labor data, contributed to these revisions.