The change in their forecast fits more with what the consensus is gearing towards now. As for next year, Nomura sees the Fed delivering 25 bps rate cuts each in March, June, and September.
Markets wanted something more from Fed chair Powell but he played it safe and labelled yesterday’s move as a “risk management” cut. He did also acknowledge that the decision was more focused on labour market risks, with risks to inflation having diminished recently but still not enough to be discarded. So, there’s some giving and taking but all in all it seems to be fitting with market pricing of ~44 bps rate cuts by year-end.
