UBS Predicts Two Fed Rate Hikes by End of 2026

UBS, one of the world's leading financial institutions, recently published its projections for Federal Reserve (Fed) rate hikes until the end of 2026. According to UBS, two significant increases in US interest rates are expected during this period. These predictions were mainly based on statements from Fed Chairman Jay Powell and recent employment statistics that indicate a robust and continuously growing US labor market. This scenario has important implications not only for the domestic American economy but also for global markets, particularly those more dependent on the dollar and US monetary policy decisions. UBS suggests that tighter monetary policy in the US could directly influence interest rates in other economies, potentially affecting credit costs and thereby impacting global economic performance. Additionally, this movement by the Fed could affect international investments, leading to changes in capital flow routes and strategies for hedging against currency risks.