UBS: Powell's debut as Fed chair leans hawkish, but expectations for a rate hike within the year may be overdone.

UBS pointed out in its latest report that the Federal Reserve Chairman Kevin Walsh's first interest rate meeting after taking office sent a clear hawkish signal, but the market's bet on interest rate hikes for the rest of the year may be too aggressive. UBS predicts that the Federal Reserve is more likely to keep the federal funds rate unchanged at 3.50%-3.75% for the remainder of the year, and recommends that investors increase their allocation to short-term and medium-term high-quality bonds to lock in the current higher yield.