HSBC: Maintains expectation that the Fed will hold rates steady this year and next

Odaily News HSBC stated that the Federal Reserve once again kept its policy rate unchanged at 3.50%-3.75% during its March meeting and hinted at adopting a "wait-and-see" approach. Persistent inflation and rising geopolitical risks have introduced uncertainty for the Fed. We maintain our previous view that the Fed will keep interest rates unchanged in 2026 and 2027. Inflation risks have increased, particularly due to soaring energy prices, while labor market risks have slightly eased. Energy price volatility and geopolitical risks should continue to support safe-haven demand and the strength of the US dollar. (Jin10)