TD Securities: Fed Policy Normalization Will Be the Key Driver of Global Interest Rates Next Year

ChainCatcher news, according to Golden Ten Data, TD Securities rate strategists stated in a report that as we enter 2026, the normalization of the Federal Reserve's policy will become a key driver in the global interest rate sector.

The strategists pointed out that market expectations for the Federal Reserve's long-term interest rates remain "stubbornly" high, but as the Fed continues to advance through its rate-cutting cycle, the market will eventually lower its expectations for the long-term federal funds rate. Since the linkage between global interest rates and US rates remains "very strong," a decline in US yields will help curb the rise in long-term borrowing costs in other regions.