Nomura Securities has issued a warning about potential regulatory uncertainty from July to November 2026 following the appointment of a new Federal Reserve Chair in May. The firm anticipates a rate cut in June, but internal disagreements could arise if the Federal Reserve decides to maintain current rates. This situation may lead to heightened tensions with the Trump administration, potentially affecting market confidence.
Nomura also highlighted that U.S. assets might become less attractive, with expectations of lower bond yields, weaker stock performance, and a declining dollar. The firm advises investors to be cautious of liquidity reversals as global rate cuts may stall, posing additional challenges to CFT measures amid evolving monetary policies.
Nomura Warns of Increased Uncertainty with New Fed Chair in 2026
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