UBS: Fed may hike rates twice this year

SINGAPORE: UBS Global Wealth Management reckons the United States Federal Reserve (Fed) may raise interest rates twice this year despite markets pricing in little chance of that happening. A growing US economy and low recession risk might provide opportunities for the Fed to ratchet up borrowing costs, said Min Lan Tan, head of the chief investment office for Asia Pacific. “Global inflation will remain low enough for policy tightening to remain gradual, so the Fed could hike twice,” said Tan at a conference yesterday.