Nomura now expects no Fed rate cuts through 2026

Nomura Securities said it now expects the U.S. Federal Reserve to keep interest rates unchanged through 2026, citing rising inflation and weakening support for policy easing among Fed officials. In a May 21 report, the firm explained that while "new Fed Chairman Kevin Walsh may still be motivated to ease policy, recent data and comments from Fed officials raise doubts about his ability to persuade a majority of the Federal Open Market Committee to support a rate cut." Nomura had previously forecast two 25 bp rate cuts this year, one in September and another in December.