Nomura Securities stated on Friday that it now expects the Federal Reserve to keep interest rates unchanged in 2026, as rising inflation and reduced willingness among Fed officials to cut rates have lowered the likelihood of near-term reductions.
In a report, Nomura Securities noted, "Incoming Fed Chair Kevin Wash may still have the desire to ease monetary policy, but recent data and statements from Fed officials lead us to question whether he can persuade a majority of the Federal Open Market Committee (FOMC) members to agree to a rate cut."
The brokerage had previously predicted that the Fed would implement two rate cuts this year, each by 25 basis points, in September and December.
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