Nomura Capital Management Anticipates Potential Rate Cut Amid Economic Indicators

According to Odaily, Nomura Capital Management's baseline scenario until mid-November suggests that the Federal Reserve will not adjust interest rates in December. However, Chief Investment Officer Matthew Parry indicated in a memo that recent data points to slowing inflation and signs of a weakening labor market, making a rate cut possible. He noted that new economic forecasts should reflect a moderation in inflation over the coming quarters, paving the way for a potential rate reduction. Parry stated, "Although our view on the Fed's near-term decisions has changed, it is clear that the current committee is more divided on how to handle the monetary policy path than it has been in a long time."