UBS Ups Interest Rate Forecast on Strong Jobs Report
UBS Global Wealth Management has updated its forecast for Federal Reserve interest rate hikes. The firm now expects the Fed to raise rates by 25 basis points in September and December, following a stronger-than-expected jobs report for August.
This change comes after UBS previously did not foresee any policy changes this year. However, recent developments have shifted their outlook, citing hawkish remarks from Fed Chair Kevin Warsh at the Jackson Hole conference, as well as supply chain-related inflation risks and robust labor data.