UBS now expects the Federal Reserve (U.S. central bank) to raise interest rates by 25 basis points in both September and December, reversing its earlier view that policy would remain unchanged this year. The shift followed an August jobs report showing 162,000 new positions and a steady 4.1% unemployment rate, as well as what UBS described as hawkish communication from Fed Chair Kevin Warsh at the Jackson Hole symposium, rising inflation risks from supply bottlenecks and strong labor data. Citigroup and Macquarie also revised their rate forecasts. Markets put the probability of a quarter-percentage-point increase at the Fed’s September 15-16 meeting at about 58%, according to CME’s FedWatch tool, up from 52% on Thursday. Fed Governor Christopher Waller said he would support keeping rates unchanged if upcoming data showed inflation pressures continuing to ease.