[UBS: Adjusts previous view and expects the Federal Reserve to raise interest rates twice in 2026] On September 10th, UBS Wealth Management (CIO) issued an institutional view that data released last Friday showed that U.S. employment growth accelerated. The previously announced personal consumption expenditures (PCE) inflation in July increased by 3.7% year-on-year, which was also higher than expected, driving the Federal Reserve's stance to become more hawkish. Currently, market prices imply that the probability of raising interest rates in September has risen from about 50% to about 60%. UBS had expected interest rates to remain unchanged throughout 2026. However, hawkish signals and the risk of upward inflation prompted it to revise this view. UBS currently predicts that the Federal Reserve will raise interest rates twice in 2026, by 25 basis points each in September and December, raising the federal funds target interest rate range from the current 3.50-3.75% to 4.00-4.25%. The impact of two interest rate hikes on economic growth is expected to remain moderate. With continued support from AI capital expenditures, UBS still expects economic growth to remain near trend levels. Investors should review their current asset allocation, which may include: building stocks on dips, taking advantage of high medium- and long-term high-quality bond yields, reducing excessive U.S. dollar positions on dips, and increasing gold holdings when gold prices pull back.