Institutions raise Fed rate forecasts

Following the messages given by Fed Chair Jerome Powell at the press conference, some institutions such as TD Securities and Nomura revised upward their estimates for the final level the Fed will set interest rates. The messages given by Powell at the press conference following the FOMC meeting caused the world’s leading banks to revise upward their estimates for the final level the Fed will reach. TD Securities raised its estimate for the final level the Fed will set interest rates from 4.75-5.0 percent to 5.00-5.25 percent. The institution predicted that interest rates would be increased by 50 basis points at the meeting to be held on December 13-14. Nomura economists also raised their expectations for the final interest rate by 25 basis points to 5.50-5.75 percent and predicted a 50 basis point rate hike for the December meeting. BofA strategists have forecast a 50 basis point hike for the December meeting, with the Fed expected to reach 4.75-5.0% in the first quarter of next year. Barclays also put its final rate expectation at 5.00-5.25%.