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 broker to suggest a rate-cutting cycle by the Federal Reserve after Trump's election victory. Nomura now expects the Federal Reserve to only cut rates twice more at the March and June meetings in 2025, each by 25 basis points. The broker's forecast for the Federal Funds Rate before next year remains unchanged at 4.125%. Nomura expects that after a possible 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%, having been reduced by 75 basis points so far this year. Meanwhile, other global brokers, including Goldman Sachs and JPMorgan, still expect the Federal Reserve to cut interest rates by 25 basis points next month.