Nomura: Powell's huge influence will cut the size of subsequent Fed rate cuts
On October 5th, economists have expressed their views because the non-farm payrolls data released on Friday far exceeded expectations, and the market basically ruled out the possibility of continuing to cut interest rates by 50 basis points. Aichi Aemiya, an analyst at Nomura Securities International, said that the Federal Reserve may cut interest rates to 25 basis points at its policy meeting in November and December. The senior economist said that the Federal Reserve will not consider cutting interest rates by another 50 basis points at this time. He made the above remarks on September 27 and October 1 before the release of the strong employment report in September.
Mr. Aemiya said Fed chairperson Jerome Powell had also shown that he had "significant influence in the decision-making process of the FOMC". He said Mr. Powell's speech in Jackson Hole at the end of August was relatively dovish, followed by a further 50 basis points rate cut at the FOMC's September meeting. "Powell's opinion dominated the committee."