UBS SAYS MARKETS OVERPRICE FED HAWKISHNESS UBS says markets are overestimating the Federal Reserve’s hawkish shift, arguing rate hike expectations are too aggressive given still-anchored inflation trends. The bank now expects Fed easing to resume in December, with another cut in March 2027, but says there is a high bar for any rate hikes. UBS attributes recent yield gains to inflation and energy fears but says they are not a reason to reduce equity exposure, recommending disciplined portfolio positioning instead. The bank remains constructive on equities, forecasting strong S&P 500 earnings growth and maintaining a 7,900 year-end target.(*Walter Bloomberg)