Nomura expects Fed to pause rate cutReutersThe US Federal Reserve is no longer expected to cut interest rates at its policy meeting next month, Nomura Holdings Inc said, making it the first global brokerage to signal a pause in the US central bank’s rate-cutting cycle in the wake of Donald Trump’s election win. Nomura now expects the Fed to deliver only two 25-basis-point rate reductions at its March and June meetings next year, leaving the brokerage’s Fed funds rate projection unchanged at 4.125 percent throughout the year. It has cut rates by 75 basis points this year. This follows the Fed’s increasing hesitancy to cut rates as a major political shift is under way after Trump’s presidential victory. Traders now see a 34.7 percent chance of the central bank pausing rate cuts next month, according to CME Group Inc’s FedWatch Tool.

Source: Taipei Times November 18, 2024 23:13 UTC