UBS Global Wealth Management has revised its U.S. interest rate cut predictions, aligning with other brokerages due to persistent inflation and a robust labor market.
The change comes as inflation hits a three-year high, driven by energy prices and a protracted war in Iran, diminishing hopes for near-term rate cuts.
Despite continued job growth and stable unemployment rates, UBS foresees rate cuts in late 2026 and early 2027, diverging from earlier expectations for this year.
(With inputs from agencies.)