HSBC: Maintaining Expectation of Fed Standstill in the Next Two Years

BlockBeats News, March 21st, HSBC Bank stated that the Federal Reserve once again kept its policy rate unchanged at 3.50%-3.75% during its March meeting, hinting at a "wait-and-see" approach. Persistent inflation and escalating geopolitical risks have brought uncertainty to the Federal Reserve.

HSBC Bank maintains its previous view that the Federal Reserve will keep interest rates unchanged in 2026 and 2027. The inflation risk has increased, especially due to the surge in energy prices, while the labor market risk has slightly declined. Energy price fluctuations and geopolitical risks are expected to continue to support safe-haven demand and a stronger US dollar. (FX678)