Julius Baer Expects December Fed Hike to Be Its Last for Now

Julius Baer expects the Federal Reserve to make one more rate increase this year, with a 25-basis-point move in December followed by an extended pause.

The bank considers December the most likely time for what it expects to be the Fed’s final increase. Its view reflects a cooling U.S. labor market and tighter financial conditions.

Higher long-term Treasury yields and a stronger dollar have driven much of that tightening, Julius Baer said. The bank distinguished those pressures from increases in short-term rates.