UBS sees third Fed rate hike in early 2027 after hot September inflation
- —UBS forecasts quarter-point hikes in December and early 2027
- —US annual inflation rose to 3.7% in September, above the 3.6% forecast
- —Gasoline drove over half of the monthly CPI gain, but core goods and services also accelerated
- —The Fed raised rates to 3.75%-4.00% last month, its first hike since 2023
Why it matters: A longer Fed tightening cycle pressures risk assets, including bitcoin and crypto, while supporting a stronger dollar.
Source: Invezz