US Stock Market: UBS pushes Fed rate cut expectations to 2027 on hawkish policy outlook

UBS has pushed its expectations for Federal Reserve rate cuts to March and June 2027, citing a hawkish policy outlook under new Chair Kevin Warsh. The Fed's policy decision is scheduled for Wednesday, with markets broadly expecting interest rates to remain unchanged. Interest-rate futures indicate a roughly 42% probability of a 25-basis-point rate increase by December, underscoring uncertainty around the US inflation outlook.