TD Securities: Shifts Fed Rate Cut Expectation from March to June, Still Expects Three Rate Cuts This Year

BlockBeats News, February 12th, Nomura Securities has revised its forecast for the timing of the Fed's next interest rate cut from March to June, still expecting a total of 75 basis points of cuts this year, bringing the target rate to 3%. Nomura Securities expects the Fed to cut interest rates by 25 basis points in June, September, and December respectively.

The team led by Chief US Macro Strategist at Nomura Securities, Oscar Munoz, stated that the anticipated policy easing is not due to a deterioration in economic conditions, but rather the result of inflation gradually returning to target levels, leading the monetary policy to "normalize." Improvements in the employment outlook should allow the Fed to shift focus to the inflation mandate.

The institution also forecasts that US bond yields will continue to decline this year, with the 10-year yield expected to fall to 3.75% by the end of the year (previously expected to be 3.5%). (FXStreet)