UBS Global Wealth Management has revised its forecast, anticipating that the Federal Reserve will raise interest rates by 25 basis points in September and December. This follows a stronger-than-expected jobs report for August.
The firm previously did not foresee any policy change this year, but recent developments have shifted this outlook.
UBS cited hawkish remarks, particularly from Fed Chair Kevin Warsh at the Jackson Hole conference, along with supply chain-related inflation risks and robust labor data, as reasons for its updated prediction.
(With inputs from agencies.)