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Ahead of Trump's inauguration, interest rates are expected to freeze next month.

2024.11.19 PM 01:44
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Ahead of Trump's inauguration, interest rates are expected to freeze next month.
While the market outlook for a U.S. benchmark rate cut is waning next month, major securities firms have also forecast a rate freeze.

Reuters said on the 18th local time that Nomura was the first global securities firm to issue a rate freeze next month after U.S. President-elect Donald Trump's presidential victory.

Nomura, however, kept its key rate forecast for next year at 4.0-4.25%, believing the Federal Reserve would cut rates by 0.25 percentage points in March and June, respectively.

Other global brokerages, including Goldman Sachs and JPMorgan, are still expecting a quarter-point cut next month.

Earlier, the Fed cut interest rates twice in a row, from 0.5 percentage points in September to 0.25 percentage points last month, and the benchmark interest rate was 4.50 to 4.75%.

According to the Fed's forecast chart for the benchmark interest rate in September, an additional 0.25 percentage point rate cut is expected next month, but uncertainty has grown in the aftermath of recent Fed figures' remarks on the preference for monetary tightening.

Fed Chairman Jerome Powell said on the 14th of this month that the U.S. economy is not sending any signals that it needs to hurry to cut interest rates.

Concerns over inflation reigniting are another factor that adds to the cautiousness of the rate cut, as the U.S. consumer price index rose to 2.6 percent in October, higher than in September (2.4 percent).




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