0857 GMT - The Federal Reserve will likely leave rates unchanged in October before raising them by 25 basis points in December, HSBC Global Research analysts write in a note. Thereafter, HSBC projects a steady federal-funds rate range of 4.00%-4.25% through 2027, saying that the committee's goal of bringing inflation down will take time. That compares with current market pricing for more than 75 basis points of additional hikes by the end of 2027, with the policy rate rising to nearly 4.7%, the analysts say. The pricing shows that markets are grappling with the question of what magnitude of hikes might be needed amid various shocks fueling inflation and the apparent resilience in overall U.S. economic momentum.
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