{"id":120264,"date":"2026-08-25T12:27:10","date_gmt":"2026-08-25T12:27:10","guid":{"rendered":"https:\/\/www.europesays.com\/ch\/120264\/"},"modified":"2026-08-25T12:27:10","modified_gmt":"2026-08-25T12:27:10","slug":"ubs-says-fed-unlikely-to-raise-rates-despite-housing-pressures-and-ai-investment","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ch\/120264\/","title":{"rendered":"UBS says Fed unlikely to raise rates despite housing pressures and AI investment"},"content":{"rendered":"

\"UBS<\/a> UBS says Fed unlikely to raise rates despite housing pressures and AI investment Proactive uses images sourced from Shutterstock <\/p>\n

UBS, the Swiss bank, expects the Federal Reserve to leave interest rates unchanged despite competing pressures from a strained housing market and strong artificial intelligence (AI) investment. <\/p>\n

Federal Reserve<\/a> Chair Kevin Warsh, who is approaching 100 days in office, faces this dilemma as the annual Economic Policy Symposium in Jackson Hole runs from Thursday to Saturday. <\/p>\n

The Federal Open Market Committee voted 9-3 in July to hold the benchmark rate at 3.5% to 3.75%, with three regional presidents voting for an immediate rate increase. <\/p>\n

Thirty-year fixed mortgage rates have spiked to 6.66%, a one-year high, with a typical family now spending 34% of income on payments for a median-priced home, according to the National Association of Home Builders. <\/p>\n

Weekly mortgage applications have fallen 6.4% and annual home sales have slowed to around four million units, UBS said, well below the historical norm of 5.2 million. <\/p>\n

Technology companies are expected to invest $820 billion in data centres this year, spending that UBS says is largely insulated from borrowing costs. <\/p>\n

Surging memory chip prices linked to AI demand have added 20 to 30 basis points to core inflation, UBS estimates, but the bank considers the effect a temporary bottleneck rather than broader overheating. <\/p>\n

Wage inflation remains subdued compared with the dotcom boom, when it approached 6%, while UBS argues that AI\u00a0could restrain wage pressures through workforce automation. <\/p>\n","protected":false},"excerpt":{"rendered":"UBS says Fed unlikely to raise rates despite housing pressures and AI investment Proactive uses images sourced from…\n","protected":false},"author":2,"featured_media":120265,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[129],"tags":[21681,58632,2563,250,58633,30670,23785,1085,223],"class_list":["post-120264","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ubs","tag-fed","tag-federal-open-market-committee","tag-interest-rates","tag-investment","tag-jackson-hole","tag-kevin-warsh","tag-mortgage-rates","tag-swiss-bank","tag-ubs"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/117156148079326757","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/120264","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=120264"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/120264\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/120265"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=120264"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=120264"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=120264"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}