thematicamericanroulettewheel: The Federal Reserve keeps its benchmark interest rate unchanged and will slow down the pace of shrinking its balance sheet starting in June

HSBC expects the Federal Reserve to cut interest rates by 25 basis points only once this year, in September; it was earlier expected to cut interest rates by 75 basis points. Analysts such as Ryan Wang said in a May 1 report that reasons cited by HSBC economists included "more and more data this year showing resilient economic growth and stubborn core inflation."

Their forecast for a 75 basis point rate cut in 2025 remains unchanged.

Regarding the expected interest rate cut during the year,"the timing is still highly uncertain, but it is basically in line with our view that core PCE inflation may decline moderately year-on-year this summer and rise to a certain extent at the end of the year."