HSBC: The Fed will raise rates twice this year, reversing its previous forecast of keeping rates unchanged.

HSBC expects the Fed to raise rates by 25 basis points each in September and December, reversing its previous view of keeping rates unchanged. U.S. economist Ryan Wang wrote in a research note that both the August employment data and the consumer price index exceeded HSBC's expectations, and the bank now believes the Federal Open Market Committee will vote for a 25-basis-point rate hike at its September 15-16 meeting. The move would raise the target range for the federal funds rate to 3.75%-4%. "We believe the median 2026 year-end rate projection in the FOMC's latest dot plot may reach 4.125%, suggesting a bias toward one more 25-basis-point hike at one of the next two meetings, namely October 27-28 and December 8-9."