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Finance & Economics

Nomura Expects Fed to Pause Rate-Cut Cycle

Experts at the Japanese financial company Nomura expect that the Federal Reserve will not decide on cutting interest rates at its monetary policy meeting next month.

Nomura Expects Fed to Pause Rate-Cut Cycle

It is worth noting that in this case, there is the first signal of the suspension of the present cycle of lowering the cost of borrowing by the central bank of the United States. At the same time, it should be clarified that in the relevant context, the signal is meant as a forecast by experts, and not as some kind of official statement by decision-makers related to monetary policy.

As noted by some media outlets, it is noteworthy that the projection that at the December meeting of officials of the central bank of the United States, no decision will be made on another lowering of the cost of borrowing was formed after Donald Trump’s victory in the presidential election of the United States. In this context, it is worth mentioning that after the election, the Fed once again cut interest rates.

Nomura experts expect that officials of the central bank of the United States will decide on a new lowering of the cost of borrowing at the March meeting. In their opinion, this indicator will be decreased by 25 basis points. They also expect the US financial regulator to make another decision on cutting interest rates in June. In this case, according to their forecasts, the indicator will also decline by 25 basis points.

It is worth noting that Goldman Sachs and JPMorgan experts expect that in December the Fed will still decide on cutting interest rates. They predict that the corresponding indicator will be declined by 25 basis points.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.