Huatai Securities: The Federal Reserve may raise interest rates twice next year

According to Jinshi News, Huatai Securities' research report states that it will be difficult for the Federal Reserve to lower interest rates again in the second half of this year, and there may be a necessity for rate hikes next year. Huatai Securities' baseline assumption is that the Federal Reserve will keep the policy interest rate unchanged this year, but the guidance will lean hawkish. The neutral forecast for next year is two rate hikes, which is higher than market expectations, mainly based on a relatively optimistic assumption of nominal growth, but still faces uncertainties such as the fundamentals of the U.S. economy, geopolitical changes, and global growth.