UBS: Federal Reserve Chairman Kevin Walsh's debut is hawkish, and market expectations for interest rate hikes are too extreme

UBS pointed out that the first interest rate meeting of Federal Reserve Chairman Kevin Walsh after taking office released hawkish signals, but the market's bets on a rate hike within the year were overwhelmingly aggressive. UBS expects the Federal Reserve to maintain the federal funds rate at 3.50% -3.75% for the remainder of this year and recommends investors increase their allocation of short and medium term high-quality bonds to lock in yields.