Interest rates may seem like a distant policy lever set by central banks, but in reality, they touch the careers of finance professionals every day. From Tokyo to New York, the path of interest rates in 2025 is reshaping where firms are hiring, what skills are most valuable, and how candidates make career decisions.

Japan: From Ultra-Low to Gradual Normalization

For decades, Japan’s financial industry operated in an environment of ultra-low or even negative interest rates. That era is now slowly shifting. The Bank of Japan’s cautious move toward rate normalization is beginning to change the dynamics inside banks, securities firms, and asset managers.

Banks and securities firms are experiencing margin relief on lending, prompting renewed interest in roles tied to treasury, risk, and product development.

Asset managers are adapting to new opportunities in fixed income, FX, and derivatives as yields climb. Demand for professionals with deep expertise in these markets is on the rise.

Candidates are sensing momentum. Many mid-career professionals who had been waiting on the sidelines are now open to moving, believing this could mark the beginning of a more dynamic phase for Japanese capital markets.

United States: Fed Policy and Market Volatility

Across the Pacific, the Federal Reserve’s interest rate policy is exerting a very different kind of pressure. Elevated rates have slowed deal-making, but also sparked volatility that is opening new opportunities.

Investment banks have seen reduced M&A and IPO activity, leading some to cut junior roles. Yet, candidates with restructuring, leveraged finance, and distressed-debt expertise are now more valuable than ever.

Hedge funds and asset managers are capitalizing on volatility, aggressively hiring quant analysts, macro traders, and risk managers.

Candidates are adapting quickly. Many are moving out of traditional investment banking into hedge funds, private credit, or fintech, seeking faster growth and resilience against rate-sensitive downturns.

Career Strategy in a Shifting Environment

What does this mean for finance professionals considering their next move?

Adaptability matters-Multi-asset and global perspectives are increasingly essential.

Upskilling pays off-Technical knowledge in rates, FX, and macroeconomics is more in demand than ever.

Timing can be strategic-Some candidates are seizing the disruption of 2025 to make bold career moves, betting that joining a new team now will position them to ride the next growth cycle.

Staying attuned to the rhythm of interest rate shifts can help both candidates and employers turn market uncertainty into long-term opportunity.