UBS raised the number of expected US interest rates hikes

The Swiss UBS updated its expectations regarding the number of Fed interest rises this year. Now the bank expects three rises in interest rates in 2018 in the world's largest economy. So far, they have forecasted only two increases.
In fact, most of market participants predict two increases in Fed interest rates this year.
According to UBS, however, there is less concern about the state of the US and the world economy, which will make the Fed much more aggressive in normalizing monetary policy and raising rates.
The rise in the price of oil and other major commodities is a major factor that UBS says will initiate an increase in inflation earlier this year. Oil is traded at around $65 a barrel currently.
However, according to experts, the number of Fed interest increases will largely depend on the decisions of other leading central banks around the world.
If the ECB and the Japanese Central Bank become more aggressive in their speeches and politics, it can also help for a more aggressive policy by the US reserve.
However, according to Charles Evans, the Fed leader in Chicago, the monetary policy committee should wait until the middle of this year before considering a new rate hike. Evans voted against the latest interest rate hike that happened in December.