UBS Extends Fed Rate-Hike Forecast Into March 2027
UBS now expects two more quarter-point increases after September’s hotter-than-expected inflation data, including one in March 2027.
Key takeaways
- UBS forecasts a 25-basis-point hike in December 2026 and another in March 2027.
- U.S. annual inflation rose to 3.7% in September from 3.4% in August.
UBS now expects the Federal Reserve to raise rates by 25 basis points in March 2027, extending its forecast beyond a December increase of the same size. The bank had previously forecast only the December move.
UBS Global Wealth Management revised its outlook after U.S. September inflation came in above expectations. The U.S. Bureau of Labor Statistics reported that annual inflation rose to 3.7% from 3.4% in August, while monthly consumer prices increased 0.6%.
The March move is UBS’s forecast, not an official Fed rate plan. The bank’s estimate followed its September rate increase, which the article describes as the first step in the cycle.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
