PANews reported on November 18 that according to Jinshi, Nomura Securities no longer expects the Federal Reserve to cut interest rates at its December policy meeting. This makes it the first global brokerage to hint at a Fed rate cut cycle after Trump won the election. Nomura Securities now expects the Fed to cut interest rates only twice more, by 25 basis points each, at meetings in March and June 2025. The brokerage's forecast for the Fed's federal funds rate before next year remains unchanged at 4.125%. Nomura Securities expects that after a possible rate cut in June next year, the Fed will suspend rate cuts for a long time until March 2026.
The Fed's benchmark overnight rate, currently in a range of 4.50%-4.75%, has been cut 75 basis points so far this year. Meanwhile, other global brokerages including Goldman Sachs and JPMorgan Chase still expect the Fed to cut interest rates by 25 basis points next month.
