Nomura: The Federal Reserve's June policy meeting could become a pivotal turning point marking the end of the credit cycle and the AI boom

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Golden Finance reports that on June 22, Nomura Securities believes that the Federal Reserve's June policy meeting may not be an ordinary hold steady meeting. If looking back ten years later, this could be seen as a critical turning point marking the end of the credit cycle and the AI boom. Nomura's Chief Global Strategist Naka Matsuzawa pointed out in the latest report that the market has overestimated the urgency of the Fed raising interest rates immediately within this year, while severely underestimating the depth and persistence of the long-term rate hike path, showing a lack of caution towards true medium- and long-term risks.
The firm expects that the Federal Reserve is very likely to remain on hold throughout 2026. Once Waller's policy stance gradually becomes clearer, coupled with inflation expectations being confirmed during the oil price decline, the current market pricing of about 1.5 rate hikes is likely to be quickly corrected. However, Matsuzawa also emphasized that the real risk is not whether there will be one or two rate hikes this year, but rather how likely these so-called preventative steps are to eventually evolve into a full, sustained cycle of substantial tightening.
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