UBS Group AGUBSG
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UBS forecasts two Fed rate hikes, which could boost its earnings from higher interest rates.
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UBS Group AG
Yulon Finance Corp9941
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UBS Group flipped its Federal Reserve forecast on Monday, now expecting quarter-point rate increases in September and December, abandoning its previous call for no policy change in 2026. The pivot came after the U.S. economy added 162,000 jobs in August while unemployment held at 4.1%, and the market-implied probability of a September increase jumped to approximately 58% from 52%. UBS's second-quarter results showed $2.8 billion in net profit, $36 billion of wealth-management net new assets, and a 14.4% CET1 capital ratio. Two hikes would lift the policy rate by 50 basis points, potentially giving UBS another earnings lever, but the stock, at $55.38, trades 42.47% above its $38.87 GF Value estimate, leaving less room for deposit pressure or weaker bond valuations to spoil the story.
UBS Group AGUBS forecasts two Fed rate hikes, which could boost its earnings from higher interest rates.
Yulon Finance Corp