UBS: First FOMC Meeting Under the Warsh Era Sounds Hawkish, Rate Hike Expectations for This Year May Be Overly Aggressive

Odaily Planet Daily News UBS noted in its latest report that the first FOMC meeting under Fed Chair Kevin Warsh's tenure sent a clearly hawkish signal, but market bets on rate hikes this year may be overly aggressive. UBS expects the Fed is more likely to keep the federal funds rate unchanged at 3.50% to 3.75% for the remainder of the year and advises investors to increase allocations to short- and medium-duration high-quality bonds to lock in current relatively high yields.