UBS Revises Fed Rate Cut Forecast Amid Economic Resilience

UBS Global Wealth Management has delayed its prediction for U.S. Federal Reserve interest rate cuts to December 2026 and March 2027, citing persistent inflation and robust economic and labor market conditions. Previously, UBS anticipated a 25 basis point reduction in September and December 2026.

UBS Global Wealth Management announced on Tuesday that it has adjusted its timeline for U.S. Federal Reserve interest rate cuts, now expecting them in December 2026 and March 2027.

This decision comes in light of ongoing inflation and strong economic and labor market performance.

The firm had initially predicted a 25 basis point rate cut for both September and December 2026.