Unbelievable Forecast for FED’s Interest Rate Move in March From Nomura!

Japan-based global financial services company Nomura said in a statement that it expects the FED to not only stop interest rate hikes in March, but also cut it by 25 basis points.

Nomura Predicts Fed Will Cut Rates By 25 Bp In March

Nomura, a global financial services company, predicted that the US Federal Reserve (FED) would cut the benchmark interest rate by 25 basis points (0.25%) in March and halt its quantitative tightening (QT) policy.

The Fed’s benchmark interest rate is the rate at which it lends money to other banks, and changes in this rate can affect borrowing costs for consumers and businesses. A rate cut usually indicates that the Fed is trying to stimulate economic growth and investment by making borrowing cheaper.

Quantitative tightening (QT) is the Fed’s policy of reducing the size of its balance sheet by selling the assets it has accumulated over time. Stopping QT means FE will stop selling assets, which could have an impact on the economy and financial markets.

Overall, Nomura’s forecast shows that he expects the Fed to take steps to support economic growth and possibly stimulate financial markets. However, it is important to note that estimates are not guaranteed and actual results may differ from those projected.

On the evening of March 12, the US Treasury, the Federal Deposit Insurance Corporation (FDIC) and the FED issued a joint statement that all depositors of Silicon Valley Bank (SVB) and Signature Bank would be compensated, citing the “systemic risk exemption”. He also pointed out that shareholders and some unsecured debt holders would not be protected.

Cryptocurrency The world will also closely follow the FED’s decision on March 22.

*Not investment advice.