Central Banks

Powell’s Outsized Influence Signals Smaller Fed Cut, Nomura Says

  • Amemiya says Powell’s NABE speech indicated no larger cuts
  • Fed’s communications before September meeting “a mess”
Jerome Powell, chairman of the US Federal Reserve, during the National Association of Business Economics (NABE) annual meeting in Nashville.Photographer: Seth Herald/Bloomberg
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The Federal Reserve is likely to downsize its rate cuts to 25 basis points at both the November and December policy meetings, according to Aichi Amemiya at Nomura Securities International.

“I do not think that the Fed is considering an additional 50 basis-point rate cut at the moment,” the senior economist said in an interview with Bloomberg News. His comments on Sept. 27 and Oct. 1. preceded a solid September jobs report.