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

Jinse Finance reported, citing foreign media, that Nomura Securities has joined its global peers in reversing its previous expectation that the Federal Reserve would keep interest rates unchanged in December. It 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 policy decision in December. Nomura revised its forecast for a Fed rate cut in December because, for the Fed's centrists, there are already enough dovish signals to justify further "risk management-style" rate cuts. Nomura expects that four hawkish members 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 in both June and September.