KUALA LUMPUR (Jan 19): HSBC predicts the US Federal Reserve will maintain interest rates throughout 2026, citing no economic justification for a reduction. This outlook places HSBC at odds with market consensus, which currently forecasts one or two rate cuts in 2026. “HSBC is actually not expecting the Fed to cut interest rates,” Neumann said during an outlook webinar on Monday. The US Fed delivered a 25 basis point cut in its last meeting in December last year, bringing the federal funds rate to 3.5%-3.75%. Powell’s term as Fed chair ends in May, though his term as a governor at the central bank runs until January 2028.
