After December Lift-Off, Fed In No Rush For Further Rate Hikes: HSBC

After the first rate hike or “lift-off” of 25bps in December, the FOMC will move slowly, spacing out two more 25bp rate hikes over course of next years, believe analysts at HSBC. In their Dec. 3 research note titled “U.S. Economic Outlook,” Kevin Logan and Ryan Wang at HSBC pegged U.S GDP growth in 2016 at 2.3%, which is below consensus.

Rate hike - USD approaching the end of 2015 on a high note

Logan and Wang point out that the U.S. GDP has increased 2.2% over the last four quarters. They note that if one were to exclude the drag from the sharp decline in net exports that has occurred over the past year, GDP would have grown at close...