HSBC expects the Federal Reserve will not cut interest rates in the next two years
HSBC Securities predicts that the Federal Reserve will maintain interest rates stable in the range set on Wednesday of 3.5%-3.75% for the next two years. Previously, Federal Reserve policymakers lowered interest rates by 25 basis points with a divided voting result. The institution's U.S. economist, Ryan Wang, noted in a report on December 10 that Federal Reserve Chairman Jerome Powell expressed an 'open attitude' regarding whether and when to further cut rates at next year's FOMC during the post-meeting press conference. 'We believe that the FOMC will keep the federal funds rate target range unchanged at 3.50%-3.75% throughout 2026 and 2027, but as the economy evolves, it is essential to always pay attention to the significant two-way risks that this outlook faces, just as in the past.'
