UBS CEO Says Tariff Impact on Inflation, Fed Still Unclear (1)

UBS Group AG Chief Executive Officer Sergio Ermotti said the impact of global tariffs on the US economy and inflation remain unclear, making it harder to predict the outlook for Federal Reserve policy.

“In the US, we still believe that growth will be there but the inflation question and how it plays out into the central bank’s policies remains open,” Ermotti said in a Bloomberg Television interview in Hong Kong on Thursday.

While a reduction to interest rates by the Fed at its Sept. 16-17 meeting is baked into expectations, beyond that investors are shifting predictions on the ...