UBS Warns of Potential 6.5% Fed Rate Hike Amid Enduring Inflation UBS Group AG strategists suggest there is a growing risk that the Federal Reserve may increase interest rates to as high as 6.5% next year, due to persistent strong U.S. economic growth and sticky inflation. Initially predicting two rate cuts this year, UBS now considers a scenario where inflation does not meet the Fed’s target, potentially leading to resumed rate hikes. This shift could trigger a significant selloff in both the bond and stock markets. Recent U.S. data indicating economic resilience has led markets to adjust expectations, reducing bets on policy easing and preparing for the possibility of increased rates if inflation remains above 2.5%. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts Republic Bank Shuts Down; FDIC Coordinates $10 Billion Asset Transfer to Fulton Bank READ MORE Five Commodity Trends Shaping Global Markets READ MORE "Buy Gold and BURY IT" – Chris Martenson w/ Mike Maloney READ MORE Sovereign Nations Eye Bitcoin as Shield Against Dollar Weaponization READ MORE China's Economic Woes Deepen as Deflation Takes Hold READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment