Nomura calls for 100 basis points at the September meeting

Nomura has raised their assessment for the September meeting to a 100 basis point hike as a result of the higher than expected CPI data today. They also raised their terminal rate in 2023 to 4.5% – 4.75%. The Federal Reserve Federal Reserve The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the Read this Term targets a fed funds rate in a 25 basis point range.

The current rate is a 2.25% to 2.5%. A 75 basis point hike would take the rate to 3.0% to 3.25%. There are 2 remaining meetings one on November 1-2 and the next is on December 13-14.

If the Fed does 50 basis points in November. That would take the rate to 3.5% – 3.75%. If they do another 50 basis points in December, that would bring the target rate to 4.0% – 4.25%. Nomura sees another 50 basis point hike above that by February 2023 (taking the rate to 4.5% – 4.75%).