Nomura Securities Revises Fed Rate Cut Expectations

According to PANews, Nomura Securities has revised its expectations regarding the Federal Reserve's interest rate cuts, no longer anticipating a rate reduction at the December policy meeting. This adjustment makes Nomura the first global brokerage to suggest a shift in the Fed's rate cut cycle following Donald Trump's election victory. The firm now predicts that the Federal Reserve will implement two more rate cuts in March and June 2025, each by 25 basis points. Nomura maintains its forecast for the federal funds rate at 4.125% until next year. Currently, the Federal Reserve's benchmark overnight rate is set within the 4.50%-4.75% range, having been reduced by 75 basis points so far this year. In contrast, other global brokerages, including Goldman Sachs and JPMorgan, continue to expect a 25 basis point rate cut by the Federal Reserve next month. Nomura anticipates that after a potential rate cut in June next year, the Federal Reserve will pause further reductions until March 2026.