ChainCatcher, citing Jinshi, reported that UBS Global Wealth Management has revised its expectations for the timing of Federal Reserve rate cuts. The institution has pushed its forecast back to March and June 2027 and no longer expects any rate cuts this year. UBS said the change reflects its judgment that this week’s Federal Reserve meeting will send a hawkish signal.
UBS Sees Two 25-Basis-Point Cuts Next Year
Under UBS Global Wealth Management’s latest projection, the Federal Reserve is expected to cut rates by 25 basis points in March 2027 and by another 25 basis points in June 2027. The Fed is scheduled to announce its interest-rate decision this week, and the market broadly expects rates to remain unchanged. The revised timeline marks a later path for easing and removes UBS’s previous expectation for a rate cut this year.
UBS analysts said the tone of the upcoming meeting will be more hawkish. They also stated that major central banks will not shift toward dovish policy because of the completion of a U.S.-Iran agreement. The comments indicate that UBS is focusing on the policy signals from this week’s Fed meeting and the broader stance of major central banks when assessing the likely rate path.