Morgan Stanley Forecasts Three Fed Rate Cuts in 2026
Nomura Securities updates its forecast, now predicting a 25 basis point cut in both October and December 2025, with additional rate cuts planned for 2026.
Summary
Nomura Securities has adjusted its forecast, now predicting that the U.S. Federal Reserve will cut interest rates by 25 basis points in both October and December 2025. The firm also expects three additional 25 basis point cuts in March, June, and September of 2026. This follows similar expectations from other financial institutions anticipating rate cuts over the coming years.
Terms & Concepts
- Federal Reserve: The central bank of the United States, responsible for setting monetary policy, including interest rates.
- Rate Cut: A reduction in the interest rate set by a central bank, typically aimed at stimulating economic activity.