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

Golden Financial reports that HSBC Securities forecasts the Federal Reserve will maintain interest rates in the 3.5%-3.75% range set on Wednesday for the next two years. Previously, Federal Reserve policymakers voted to cut rates by 25 basis points with a divided vote. In a report released on December 10, the institution’s US economist Ryan Wang pointed out that Federal Reserve Chair Jerome Powell “was open to the possibility of further rate cuts by the FOMC next year and whether and when they might occur” during the post-meeting press conference. “We believe that the FOMC will keep the federal funds rate target range at 3.50%-3.75% throughout 2026 and 2027, but as the economy evolves, as in the past, we must always pay close attention to the significant two-way risks facing this outlook.”