TD Securities: The Fed's policy normalization will be a key driver of global interest rates next year.

According to ChainCatcher news and Jin10 reports, the interest rate strategist at TD Securities stated in a report that as we enter 2026, the normalization of Fed policy will become a key driver in the global interest rate arena. The strategist pointed out that the market's expectations for the Fed's long-term interest rates remain “stubbornly” high, but as the Fed continues to advance in the rate-cutting cycle, the market will eventually adjust its expectations for the long-term federal funds rate downward. Given the “very strong” correlation between global interest rates and U.S. rates, the decline in U.S. yields will help suppress the rise in long-term borrowing costs in other regions.