Greece Just a Distraction With Fed Rate Hike Looming, UBS Says
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As negotiations over Greece rattle traders, the more significant event that will dictate the future of equity markets is the first Federal Reserve interest-rate increase in nine years, UBS Group AG says.
Economists expect the central bank to leave the Fed funds rate unchanged on Wednesday, and a Morgan Stanley index shows policy makers will raise it in about 5 1/2 months. Investors choosing to focus on Greece are missing the bigger picture, according to Mark Andersen, the head of regional asset allocation at UBS’s wealth-management unit, which oversees $2.2 trillion.