Nomura Securities: Inflation is rising, and it is expected that the Federal Reserve will not cut interest rates until 2026.

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Mars Finance News reported that on May 22, Nomura Securities expected that due to rising inflation and weaker support from Federal Reserve officials for an accommodative policy, the likelihood of near-term interest-rate cuts has decreased, and the Federal Reserve will keep interest rates unchanged in 2026.

In a report dated May 21, Nomura said, “The incoming Federal Reserve Chair Kevin Worsh may still have motivation to ease policy, but recent data and remarks by Federal Reserve officials have made us doubt whether he can persuade a majority of members of the Federal Open Market Committee to support an interest-rate cut.”

The institution previously expected the Federal Reserve to cut rates by 25 basis points in September and December this year, respectively. (Jin10)

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VinesCoiledIntoGeometricShapes
· 6h ago
Nomura report date is May 21; at that time, the CPI hadn't been released yet. Looking now, it might be more pessimistic.
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SeaSaltSparklingWater
· 6h ago
Nomura's shift was quick enough; the September interest rate cut expectation is gone.
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PixelatedDriedFish
· 6h ago
From two interest rate cuts to zero interest rate cuts, the expected adjustment magnitude will cause market volatility to take off.
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Cream-ColoredCross-ChainBridge
· 6h ago
Keeping interest rates unchanged isn't good news for risk assets; the crypto market is under pressure again as expectations increase.
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ZeroSlippage
· 6h ago
Officials' statements collectively turn hawkish, Powell probably breathes a sigh of relief, no longer having to take the blame.
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Stop-LossLineForTheEveningGlow
· 6h ago
Staying put in 2026? Then the liquidity tightening cycle is much longer than expected.
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