UBS NOW EXPECTS THIRD FED RATE HIKE IN MARCH 2027

UBS HAS REVISED ITS FED OUTLOOK AFTER SEPTEMBER INFLATION CAME IN HOTTER THAN EXPECTED, WITH HEADLINE CPI REACHING 3.7% YOY.

THE BANK NOW EXPECTS THREE RATE HIKES IN TOTAL: SEPTEMBER AND DECEMBER 2026, FOLLOWED BY MARCH 2027, BEFORE THE FED PAUSES UNTIL LATE 2027.

UBS SAYS INFLATION PRESSURES ARE SPREADING BEYOND ENERGY INTO GOODS AND SERVICES.

MARKETS ARE PRICING IN NEARLY FIVE HIKES, SUGGESTING INVESTORS EXPECT EVEN MORE AGGRESSIVE TIGHTENING. ...