HSBC expects the Federal Reserve to not cut interest rates in the next two years.

HSBC expects the Federal Reserve to hold rates steady in the next two years HSBC Securities forecasts that the Federal Reserve will maintain interest rates within the 3.5%-3.75% range set on Wednesday for the next two years. Previously, Federal Reserve policymakers voted with a split result to cut rates by 25 basis points. In a report released on December 10, U.S. economist Ryan Wang pointed out that Federal Reserve Chair Jerome Powell “remained open-minded about whether and when the FOMC might cut rates further next year” during the post-meeting press conference. “We believe the FOMC will keep the target range for the federal funds rate at 3.50%-3.75% throughout 2026 and 2027, but as the economy evolves, as in the past, we must always be mindful of the significant upside and downside risks to this outlook.”