The July 2026 HSBC report analyzes the June FOMC minutes, noting a debate among policymakers regarding the necessity of future rate hikes to control inflation. HSBC maintains a steady policy rate outlook for 2026 and 2027 despite market expectations for hikes.
Key Takeaways
- 1.June FOMC minutes showed divided views on the need for future rate hikes given inflationary concerns versus scenarios where pressures might dissipate.
- 2.HSBC maintains a forecast that the FOMC will hold the federal funds target range at 3.50-3.75% through 2026 and 2027.
- 3.Labor market conditions remain generally stable and balanced according to recent FOMC minutes.
Table of Contents
- FOMC minutes
- Judgement required
- United States
- Another “family fight” looms in July
- FOMC views on the labor market
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Authors
Ryan Wang
Securities
Federal Funds
Themes
InflationLabor MarketMonetary Policy
Regions
North AmericaUnited States