Nomura's prediction is quite aggressive, extending all the way to 2026, shattering the dream of interest rate cuts.

Nomura Securities states that due to rising inflation and weakened official support for easing, the likelihood of recent rate cuts has decreased, and it is expected that the Federal Reserve will keep interest rates unchanged in 2026. Although new Chair Powell may push for easing, recent data and officials' remarks make it difficult for him to persuade most FOMC members to cut rates; previously, it was also expected that the Federal Reserve would cut rates by 25 basis points in September and December of this year.