HSBC predicts that the Federal Reserve will keep interest rates stable in the 3.5%-3.75% range set on Wednesday for the next two years. Earlier, the Fed's policymakers cut interest rates by 25 basis points as a result of a divided vote. The agency's American economist Ryan Wang pointed out in a December 10 report that Federal Reserve Chairman Jerome Powell was “open to the question of whether and when the FOMC will cut interest rates further next year” 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, as in the past, we need to keep an eye on the important two-way risks faced by this outlook.”

HSBC predicts that the Federal Reserve will keep interest rates stable in the 3.5%-3.75% range set on Wednesday for the next two years. Earlier, the Fed's policymakers cut interest rates by 25 basis points as a result of a divided vote. The agency's American economist Ryan Wang pointed out in a December 10 report that Federal Reserve Chairman Jerome Powell was “open to the question of whether and when the FOMC will cut interest rates further next year” 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, as in the past, we need to keep an eye on the important two-way risks faced by this outlook.”