Nomura: Inflation risks and additional factors have delayed the Fed's rate cut expectations until September

Odaily Planet Daily News: Nomura Securities has postponed its expectations for a Federal Reserve interest rate cut to September and December, citing new inflation risks arising from the Middle East conflict. Nomura’s Chief U.S. Economist Jeremy Schwartz also pointed out that the delay in the confirmation process for Federal Reserve Chair nominee Kevin Walsh is another reason for his adjustment of the rate cut timeline from previous predictions of June and September. Although price pressures are seen as temporary, the Fed may remain cautious in the short term. Nevertheless, policymakers still maintain a preference for easing, and Nomura expects the new Fed chair to prioritize significant policy loosening. He stated, “Federal Open Market Committee officials maintain a preference for easing and exhibit an asymmetric response to any signs of weakness in the labor market.” (Golden Ten)