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 Fed Leaves Rates Steady, Projects Fewer Cuts in 2024 Amid Slower Inflation READ MORE BRICS Grain Exchange Idea Moves Forward READ MORE Chinese Gold Appetite Wanes as Prices Soar and Economy Slows READ MORE Dimon Highlights Commercial Real Estate's Recession-Contingent Future READ MORE Oil Volatility Hits Multiyear Low as Threat of Mideast Conflict Lowers READ MORE Add a Comment Cancel replyYour email address will not be published.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