UBS Pushes Back US Rate Cut Forecasts to December
UBS Global Wealth Management has shifted its first expected Federal Reserve rate cut to December 2026 due to resilient labor data and high energy costs. Analysts cite the ongoing Iran war and April consumer inflation reaching a three-year high as primary factors reducing the urgency for near-term policy easing.
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UBS GROUP AG-REG delayed its forecast for United States interest rate cuts, now expecting two 25 basis point reductions in December 2026 and March 2027. The brokerage previously anticipated easing in September and December 2026 as inflation remains at a three-year high. Higher-for-longer rates increase borrowing costs for investors while signaling a surprisingly resilient labor market and economy.
