UBS’s Chief Investment Office expects two more Federal Reserve rate increases after September’s move, as new U.S. inflation data and reported crypto liquidations add to the market backdrop.
On Thursday, Oct. 15, the UBS office forecast increases in December 2026 and March 2027, followed by a pause until late 2027. The Fed raised its target range by a quarter percentage point on Sept. 16, to 3.75% to 4.00%. UBS said investor expectations implied about 3.5 further increases beyond September’s move, more than the two in its own outlook. The note discussed U.S. assets and equities and did not make a crypto-specific forecast.
The U.S. Bureau of Labor Statistics (BLS) said the Consumer Price Index (CPI) rose 0.6% in September from August, seasonally adjusted, and was up 3.7% over the 12 months, unadjusted. Excluding food and energy, prices rose 0.3% for the month and 2.6% over the year. The BLS also reported that its final-demand Producer Price Index (PPI) increased 1.3% in September, seasonally adjusted, and 6.3% over 12 months, unadjusted. Final-demand goods prices rose 2.6%, with energy accounting for more than 80% of that monthly increase.
Decrypt reported Thursday, citing CoinGlass, that liquidations totaled $948.22 million over a rolling 24-hour window. The report counted 177,440 traders; positions held in expectation of price gains accounted for $858.96 million, or 90.6% of the total. CoinGlass explains that an exchange closes a leveraged position when a trader’s margin no longer meets the required level. The reported total measures the value of positions closed, not traders’ cash losses.
EconoTimes previously covered the broader crypto pullback in a report on Zcash (ZEC) exchange inflows.
The Fed’s next policy meeting is scheduled for Oct. 27–28. The BLS has scheduled its October CPI report for Nov. 10 and its PPI report for Nov. 13, both at 8:30 a.m. ET.
