UBS: Warsh’s first FOMC meeting turns hawkish, rate hike expectations for the year may be overly aggressive

Odaily reported that UBS noted in its latest report that the first FOMC meeting under newly appointed Fed Chair Kevin Warsh sent a clear hawkish signal, but the market's bets on rate hikes this year may be too 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 recommends investors increase allocations to short- and medium-duration high-quality bonds to lock in the current relatively high yields.