UBS Expects Two More Fed Rate Hikes

UBS expects the Federal Reserve to raise interest rates by a quarter point in December and again in March 2027, extending the tightening cycle after its September increase. The bank cites persistent inflation in both goods and services, with pressures including stronger prices across several consumer categories; it also raised its year-end forecast for the 10-year Treasury yield. The Fed has not committed to those future moves, and market expectations differ, with investors pricing in a greater chance of additional increases than UBS forecasts.