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 ups the pace of tightening

At the May meeting, the Federal Reserve (Fed) raised the federal funds target range by 50bp to 0.75-1.00 per cent
05 May 2022
    Articles
    Download the full reportPDF, 1.09MB

    Key takeaways:

    • At the May meeting, the Federal Reserve (Fed) raised the federal funds target range by 50bp to 0.75-1.00 per cent
    • The FOMC also announced it will begin reducing its holdings of USTs and MBS from June 1st with the pace of run-off increasing after three months
    • Chair Powell stated that the FOMC aims to raise the policy rate “expeditiously” towards more normal levels with further 50bp hikes “on the table” for the “next couple of meetings”
    • We think a defensive allocation remains appropriate against a backdrop of brisk policy normalisation, which means a selective approach within a neutral stance on global equities

    Related articles

    Back to top