PANews reported on November 18 that Nomura Securities no longer expects the Federal Reserve to cut interest rates at the December policy meeting. This makes it the first global brokerage to suggest that the Federal Reserve will enter a rate-cutting cycle after Trump's election victory. Nomura Securities now expects the Federal Reserve will only cut rates two more times at the meetings in March and June 2025, by 25 basis points each time. The brokerage keeps its forecast for the Federal Funds Rate before next year unchanged at 4.125%. Nomura Securities expects that after a potential rate cut in June next year, the Federal Reserve will pause rate cuts until March 2026.
The Federal Reserve's benchmark overnight interest rate is currently in the range of 4.50%-4.75%. It has been reduced by 75 basis points so far this year. Meanwhile, other global brokerages, including Goldman Sachs and JPMorgan, still expect that the Federal Reserve will cut interest rates by 25 basis points next month.
