UBS Drops No-Hike Call, Now Bets On Two Fed Increases
The bank scrapped its zero-hikes forecast after August jobs data, now expects the fed funds rate near 4.00% to 4.25% by December.
- UBS's Sept. 7 note swaps zero 2026 hikes for two quarter-point increases, in September and December.
- August private payrolls added 127,000 jobs against a 55,000 forecast; unemployment held at 4.1%.
- Fed Chair Kevin Warsh says inflation must return to 2% "clearly and at sufficient speed" first.
Why it matters: A wealth manager telling clients a rate hike won't hurt is also telling them not to leave the market.
UBS Global Wealth Management, CIO Daily note ↗ · Sep 10, 20269/10/26