Nomura Securities changes its stance, expects the Federal Reserve to cut rates in December

Odaily Planet Daily News: According to foreign media reports, Nomura Securities has joined its global peers in reversing its previous expectation that the Federal Reserve would keep interest rates unchanged in December. Nomura now believes that the Fed will cut rates by 25 basis points at its December policy meeting. However, Nomura also stated that there is still significant uncertainty regarding the December policy decision. Nomura revised its December rate cut expectation for the Fed because, for the Fed’s centrists, there have already been enough dovish signals to justify further “risk-management-oriented” rate cuts. Nomura expects that four hawkish officials will oppose the rate cut decision, while Milan will take a dovish stance and support a 50 basis point rate cut. Nomura continues to expect that in 2026, under the leadership of a new Fed chair, the Federal Reserve will cut rates by 25 basis points each in June and September.