UBS Expects Two Fed Rate Hikes in 2026

UBS expects the Federal Reserve to raise interest rates twice this year following a strong jobs report. U.S. employers added 162000 jobs in August and unemployment held at 4.1 percent.

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FILE PHOTO: View of the facade as construction continues on the Federal Reserve Board building, in Washington, D.C., U.S., September 17, 2025. REUTERS/Ken Cedeno/File Photo

UBS Group AG revised its outlook to forecast two U.S. Federal Reserve interest rate hikes of 25 basis points each in September and December. The shift follows a resilient labor market report in the United States that challenged previous easing expectations. The brokerage previously anticipated no monetary policy changes throughout the year.

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