Nomura Securities Revises Fed Rate Cut Expectations for December

According to Odaily, Nomura Securities has revised its forecast regarding a potential rate cut by the Federal Reserve in December. This decision follows the Federal Reserve's October rate decision and a press conference by U.S. Federal Reserve Chair Jerome Powell. During the conference, Powell indicated that a rate hike in December is not guaranteed. This aligns with Powell's current stance, as he is unlikely to commit to any actions prematurely, especially given the ongoing government shutdown, which has lasted a month and significantly impacted the release of economic data. Previously, Nomura Securities had anticipated a 25 basis point rate cut by the Federal Reserve in December. However, current conditions suggest a shift in expectations. The federal funds futures market now estimates the likelihood of another rate cut by the end of the year at approximately 72%, a decrease from about 91% before the Federal Reserve's decision.