HSBC expects the Federal Reserve to raise interest rates by 25 basis points each in September and December, changing its previous view of keeping interest rates unchanged. American economist Wang Ryan wrote in the research report that the August employment data and consumer price index both exceeded HSBC's expectations. The bank currently believes that the Federal Open Market Committee will vote to raise interest rates by 25 basis points at the September 15-16 meeting. This move would raise the federal funds rate target range to 3.75%-4%. “We believe the median interest rate forecast for the end of 2026 in the FOMC's latest bitmap may reach 4.125%, which indicates a tendency to raise interest rates by another 25 basis points during the next two meetings, October 27-28 and December 8-9.”

HSBC expects the Federal Reserve to raise interest rates by 25 basis points each in September and December, changing its previous view of keeping interest rates unchanged. American economist Wang Ryan wrote in the research report that the August employment data and consumer price index both exceeded HSBC's expectations. The bank currently believes that the Federal Open Market Committee will vote to raise interest rates by 25 basis points at the September 15-16 meeting. This move would raise the federal funds rate target range to 3.75%-4%. “We believe the median interest rate forecast for the end of 2026 in the FOMC's latest bitmap may reach 4.125%, which indicates a tendency to raise interest rates by another 25 basis points during the next two meetings, October 27-28 and December 8-9.”