HSBC: Maintains expectations that the Federal Reserve will remain on hold for the next two years

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Odaily Planet Daily reports that HSBC states the Federal Reserve kept its policy interest rate unchanged at 3.50%-3.75% during the March meeting and signaled a “wait-and-see” approach. Persistent inflation and rising geopolitical risks have introduced uncertainty for the Fed. We maintain our previous view that the Federal Reserve will keep rates steady in 2026 and 2027. Inflation risks have increased, especially due to soaring energy prices, while labor market risks have slightly decreased. Fluctuations in energy prices and geopolitical risks are expected to continue supporting safe-haven demand and a stronger US dollar. (Jin10)

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