UBS CIO says the market may be overly aggressive in pricing further Fed tightening. Currently, federal funds futures indicate about a 70% chance of a rate hike in October, but UBS's baseline scenario remains that the Fed will hike rates once more in December and then hold steady. The institution expects the BEA annual revision may lower core PCE inflation by about 0.2 percentage points, coupled with favorable base effects in the first half of next year, inflation is likely to continue easing over the next six months. The September dot plot median also shows policy rates at 4.1% by the end of 2026 and 2027. Meanwhile, U.S. September composite PMI rose to 58.4, and UBS believes economic activity and corporate earnings remain resilient. https://www.(wublock123.com)/news/ubs-cio-says-market-may-be-overpricing-fed-tightening-69009