Nomura Securities announced that the likelihood of recent interest rate cuts has decreased due to rising inflation and weakening support for policy easing among Fed officials, and the Fed is expected to maintain interest rates at their current level even in 2026. In a report on May 21, Nomura explained, "While incoming Fed Chair Kevin Walsh may still have an incentive to ease policy, recent data and comments from Fed officials raise doubts about whether he can persuade a majority of the Federal Open Market Committee to support rate cuts." The institution had previously anticipated 25bp rate cuts in September and December of this year.
