HSBC Predicts Fed's Interest Rates to Remain Unchanged Amid Inflation Concerns

On March 21, HSBC announced that the Federal Reserve maintained its policy interest rate at 3.50%-3.75% during its March meeting, indicating a 'wait-and-see' approach. According to BlockBeats, ongoing inflation and rising geopolitical risks contribute to uncertainty for the Federal Reserve. HSBC continues to hold its previous view that the Federal Reserve will keep interest rates unchanged through 2026 and 2027. Inflation risks have increased, particularly due to surging 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 dollar.