TD Securities: Delays the Federal Reserve's rate cut expectation from March to June, still expects three rate cuts within the year

MarsBitNews · 2026-02-12T03:28:42+00:00

TD Securities delays the Fed rate cut forecast from March to June, expecting a 75 basis point cut to 3% this year. A 25 basis point cut is expected in June, September, and December. The easing policy is driven by inflation returning to target, not economic deterioration. U.S. Treasury yields will decline, with the 10-year yield expected to fall to 3.75% by year-end.

MarsBitNews

2026-02-12 03:28:42

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Mars Finance News: On February 12, TD Securities delayed their forecast for the Federal Reserve’s next rate cut from March to June. They still expect a total cut of 75 basis points this year, bringing the terminal rate to 3%. TD Securities predicts the Fed will cut rates by 25 basis points each in June, September, and December. The team led by Chief U.S. Macro Strategist Oscar Munoz stated that the anticipated easing policy is not due to worsening economic conditions, but rather a result of monetary policy “normalization” as inflation gradually returns to target levels. Improved employment prospects should allow the Fed to shift its focus to inflation. The firm also expects U.S. Treasury yields to continue declining this year, with the 10-year yield falling to 3.75% by year-end (previously estimated at 3.5%). (Jin10)

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