Back    Zoom +    Zoom -
<Research>HSBC Research Expects Fed to Cut Rates by 25 bps Each in Sep/ Dec 2025/ Mar 2026
Recommend
9
Positive
15
Negative
14
The Federal Reserve put its policy rate on hold, with the outlook for rate cuts hinging on the impact of tariffs on consumer inflation, labor market conditions, and changes in the unemployment rate, HSBC Global Research said in a report, foreseeing further weakening of the US dollar and holding an optimistic view on risk assets.

The Fed lately expected the core PCE inflation rate to climb to 3.1% by the end of this year, cited the broker. According to calculations of the broker, if the core PCE price index were to rise by 0.3% per month for the rest of this year, this forecast will be realized.

Related NewsUBS: Some Foreign Banks' Absence from NWD's Refinancing May Spark Concerns; CN Banks Can Fill Funding Gap
The broker still predicted a cumulative rate cut of 75 bps for 2025 and 2026, reflecting their belief that US inflation will remain well above the authorities' 2% inflation target during this period. The broker forecast the Fed to cut rates by 25 bps each in September 2025, December 2025, and March 2026.
AASTOCKS Financial News
Website: www.aastocks.com