Nomura, a financial services giant, predicts that the Federal Reserve will not raise interest rates and may even cut them at its upcoming meeting. This is due to the risks to financial stability. Nomura economists Aichi Amemiya and Jacob Meyer suggest that the Fed may also halt quantitative tightening, which will help banks maintain reserves. These predictions come after several banks related to the crypto and tech industry in the US collapsed. Despite this, cryptocurrencies have surged, and the possibility of a rate cut next week could fuel the rally further. Traditional financial markets view the government’s actions as insufficient, given the decline in share prices of financial services firms, and the Fed may create a new lending facility.
