Nomura Holdings now expects the Federal Reserve to begin easing policy with a 25bp rate cut in September, citing a weakening US labour market and ebbing inflation risks.
- The bank’s economists forecast two further quarter-point cuts in December and March.
The shift marks an earlier call than Nomura’s previous view, which anticipated the first move later in the year. While many analysts had already pencilled in a cut within the next three months, Nomura’s adjustment underscores growing confidence that the Fed will act sooner.
This article was written by Eamonn Sheridan at investinglive.com.