Nomura withdraws outlook for Fed December rate cut…"Powell: low likelihood of a hasty cut"

Nomura Securities revised its outlook for an additional December rate cut after the U.S. Federal Reserve (Fed, the Fed)'s October rate decision and Chair Jerome Powell's press conference.

On the 30th (local time), according to O'Daily, Nomura Securities withdrew its December rate cut outlook, saying Powell's remark at the press conference that "a December rate cut is not certain" "perfectly matches current market expectations."

In particular, Nomura analyzed that "with major economic data releases delayed due to a month-long government shutdown, Powell is unlikely to hastily cut rates."

Previously, Nomura had expected a 25bp (0.25% point) rate cut at the December Federal Open Market Committee (FOMC) meeting, but revised its outlook following this decision. Currently, the federal funds futures market is pricing in about a 72% chance of an additional rate cut before year-end, down from a 91% level prior to the Fed's decision.