Nomura Securities expects the Federal Reserve to cut interest rates by 25 basis points in December

According to Jinshi News, Nomura Securities has changed its stance, expecting the Federal Reserve to cut interest rates by 25 basis points at the December policy meeting, reversing its previous expectation of maintaining rates. Nevertheless, Nomura pointed out that there is still considerable uncertainty regarding the policy decision in December. The bank believes that there are enough dovish signals to support further "risk management-style rate cuts."

It is expected that four hawkish members will oppose the rate cut, while Milan supports a 50 basis point cut. Nomura also anticipates that under the leadership of the new Federal Reserve Chair in 2026, the Federal Reserve will cut rates by 25 basis points in both June and September.