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UBS On-Air: House View

House View Daily | Fed inflation concerns put US data in focus

Yesterday
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Renewed uncertainty over the reopening of the Strait of Hormuz has pushed oil prices and bond yields higher, reviving concerns that the Federal Reserve may need to tighten policy. Policymakers have made clear that they are willing to raise rates if inflation remains too high. But we believe moderate labor-market slowing and further underlying disinflation will allow the Fed to remain on hold this year.