Nomura Securities changes its stance, expecting the Federal Reserve to cut interest rates in December
Odaily Planet Daily reported that Nomura Securities has joined the ranks of global peers, reversing its previous expectation that the Federal Reserve would maintain interest rates in December. It now believes that the Federal Reserve will cut rates by 25 basis points at the December policy meeting. However, Nomura also stated that there is still significant uncertainty regarding the policy decision in December. Nomura revised its expectation for a rate cut in December, citing that there are already enough dovish signals for the Fed's moderates to justify a further "risk management style rate cut". Nomura expects that four hawkish individuals will oppose the rate cut decision, while Milan will take a dovish stance, supporting a 50 basis point cut. Nomura continues to expect that in 2026, under the leadership of the new Federal Reserve Chair, the Federal Reserve will cut rates by 25 basis points in June and September.
