Nomura Securities: Withdrawal of Expectation for Another Rate Cut by the Fed in December
BlockBeats News, October 30th. Nomura Securities has abandoned its expectation of another interest rate cut by the Federal Reserve in December, following the Fed's October rate decision and Powell's press conference. Fed Chair Powell stated during the press conference that a December rate hike is "not set in stone." This is in line with Powell's current communication strategy—he cannot commit to anything in advance, especially amid a month-long government shutdown that has severely impacted economic data releases. Nomura Securities had previously predicted that the Fed would cut rates by 25 basis points again in December. Looking at the current situation, the federal funds futures market is pricing in a 72% probability of another rate cut by the end of the year, down from around 91% before the Fed's decision. (FX678)
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