HSBC Global Investment Research American economist Ryan Wang: Federal Reserve officials still have differences in the subsequent interest rate cut path, predicting the target interest rate range to be lowered to 3.5%-3.75%.

HSBC Global Investment Research economist Ryan Wang said that the latest dot plot also shows that Federal Reserve officials still have differences in the subsequent interest rate cut path. HSBC Global Investment Research maintains its previous forecast view that the Fed will only cut rates twice by 25 basis points each before the end of 2026, lowering the target range to 3.5%-3.75%. If the labor market conditions in the United States deteriorate further, especially if the number of people applying for unemployment benefits increases, it is not ruled out that the Fed may consider cutting rates by 25 basis points again in October or increasing the size of rate cuts next year.