Nomura Securities has adjusted its forecast, now anticipating a 25-basis-point rate cut by the Federal Reserve at its December policy meeting. This shift aligns with other global financial institutions moving away from expecting a rate hold. Nomura attributes this change to dovish signals that suggest a 'risk management-driven rate cut' could be favored by centrist members of the Fed.
The firm also highlighted the uncertainty surrounding the decision, projecting four hawkish dissenters and support from Milan for a more aggressive 50-basis-point cut. Looking ahead, Nomura maintains its expectation of two additional 25-basis-point cuts in 2026 under a new Fed chair.
Nomura Predicts 25-Basis-Point Fed Rate Cut in December
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