Nomura Securities: The Fed is expected to cut interest rates only twice, in March and June next year, by 25 basis points each time

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-cutting 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 its meetings in March and June 2025. Nomura Securities believes that with continued economic growth and inflation likely to rise further, policymakers have recently made hawkish remarks, which further indicates that the Fed is not in a hurry to cut interest rates, so the Fed will pause its tightening cycle next month. Nomura Securities also expects that after a possible rate cut in June next year, the Fed will suspend rate cuts for a long time until March 2026. (Jinshi)