Nomura Securities has changed its stance and now expects the Federal Reserve to cut interest rates in December.

According to Odaily Planet Daily, citing foreign media reports, Nomura Securities has joined its global peers in reversing its previous expectation that the Federal Reserve would keep interest rates unchanged in December. Nomura now believes the Fed will cut rates by 25 basis points at its December policy meeting. However, Nomura also stated that there is still considerable uncertainty surrounding the December policy decision. Nomura revised its December rate cut forecast because there have been enough dovish signals from Fed centrists to justify further "risk-management rate cuts." Nomura expects four hawks to oppose the rate cut, while Milan will take a dovish stance, supporting a 50 basis point cut. Nomura continues to predict that in 2026, under the leadership of a new Fed chairman, the Fed will cut rates by 25 basis points in June and September respectively.