Please upgrade your browser

We take your security very seriously. In order to protect you and our systems, we are making changes to all HSBC websites that means some of the oldest web browser versions will no longer be able to access these sites. Generally, the latest versions of a browser (like Edge, Chrome, Safari, etc.) and an operating system family (like Microsoft Windows, MacOS) have the most up-to-date security features.

If you are seeing this message, we have detected that you are using an older, unsupported browser.

See how to update your browser

Fed hiking cycle underway

At the March meeting, the Fed raised the federal funds target range by 25bp to 0.25-0.50 per cent
17 March 2022
    Download the full reportPDF, 410.91KB

    Key takeaways:

    • At the March meeting, the Fed raised the federal funds target range by 25bp to 0.25-0.50 per cent
    • Chair Powell also signalled the Fed could start reducing the size of its balance sheet as soon as the May meeting
    • The median expectation of FOMC members is now for seven hikes in 2022 and for the federal funds rate to reach close to 3.00 per cent by end-2023. From mid-Q2, we expect the growth/inflation backdrop to improve, allowing risky asset classes to perform
    • We think a defensive allocation is appropriate against a backdrop of policy normalisation, which means a selective approach rather than reducing equity exposures