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Hang Seng Bank Expects Fed to Still Have Room for 2 Rate Cuts This Yr
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The US Fed kept interest rates unchanged, as expected by the market, a senior economist at Hang Seng Bank, said. Regarding the impact of the situation in the Middle East on the US economy and inflation, Fed Chair Jerome Powell adopted a wait-and-see approach, emphasizing that the sharp rise in energy prices increased economic uncertainty, but he did not express excessive concern about inflation risks. The latest dot plot indicates rate cuts of 0.25 ppts each in 2026 and 2027. Overall, Fed officials’ stance was more moderate than expected. Given that the sharp rise in energy prices will have limited long-term impact on inflation, and considering that the incoming Fed chair is likely to adopt a dovish stance, the bank expected there to still be room for two rate cuts this year, each by 0.25 ppts. AAStocks Financial News Website: www.aastocks.com |
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