According to Bloomberg, UBS predicted the day before yesterday:

Due to the strong growth of the U.S. economy and high inflation, the possibility of the Federal Reserve raising interest rates has greatly increased, which also makesBorrowing costs could be as high as 6.5% next year.

Although UBS's base case is for two rate cuts this year, it sees a growing likelihood that inflation will fail to fall to the Fed's target, spurring a return to rate hikes.and triggered a sharp sell-off in bonds and stocks..

Currently, UBS has predicted the intensity of the rate cut.down from 275 basis points to 50 basis points.

"If the economic expansion remains resilient and inflation slides into 2.5% or higher, the FOMC could raise rates again early next year," some UBS strategists said.The federal funds rate will reach 6.5% by the middle of next year. "

Strategists predict that further rate hikes will prompt a sharp flattening of the U.S. Treasury curve as benchmark yields move "significantly higher,"The stock market will also fall by 10% to 15%.

Let’s just say that with these wave of interest rate hikes, I really don’t know when they will end…

What do you think of this? Welcome to chat in the comment area~

*This article refers to relevant articles compiled from Lianhe Zaobao and Bloomberg