Lates News

Nomura Securities delayed the expectation of a Fed rate cut to September and December, citing new inflation risks sparked by the conflict in the Middle East. Nomura Securities' chief U.S. economist Jeremy Schwartz also pointed out that the confirmation process for Fed Chair nominee Kevin Warsh's appointment being delayed was another reason for revising the rate cut timeline from the previous prediction of June and September. Although price pressures are seen as temporary, the Fed may remain cautious in the short term. Nonetheless, decision-makers still maintain a preference for accommodative policy, with Nomura Securities predicting that the new Fed Chair will prioritize significantly easing policy. He stated, "FOMC officials maintain a preference for accommodative policy and exhibit asymmetric responses to any signs of weakness in the labor market."