japan’s top brokerage nomura has reportedly projected the federal reserve will cut interest rates next week and will halt quantitative tightening as policymakers evaluate financial stability risks in the wake of the silicon valley bank collapse what happened nomura analysts had earlier forecast a 50 basis point rate hike by the fed during its march meeting but now expect a 25 bps cut stated a reuters report published by yahoo finance see also best penny stocks however if the consumer price inflation print for february comes in higher the central bank will find itself in a big dilemma the question then would be whether to prioritize inflation fight and hike rates or hold rate hike for the time being till policymakers are able to clearly evaluate risks to financial stability some relief did appear in the form of the february 2023 survey of consumer expectations released by the federal reserve bank of new yorks center for microeconomic data that showed inflation expectations decreased sharply at the shortterm horizon median inflation expectations dropped by 08 percentage point at the oneyearahead horizon to 42 it said banking and financial stocks have been taking a hard beating over the last few days as investors weighedin the prospect of the crisis turning into a contagion market participants however also began considering the possibility of no rate hikes in the march fed policy given the ongoing crisis price action as a result major wall street indices closed mixed on monday with the spdr sp 500 etf trust spy closing 014 lower and the invesco qqq trust series 1 qqq gaining 074 experts have been calling for immediate shortterms steps by the government to limit any potential contagion former treasury secretary lawrence summers reportedly said that the government must take immediate steps to ensure depositors get their money back and should also inspect institutions that are struggling read next ‘big short’ investor michael burry on current banking crisis ‘i am not seeing true danger here’