Delayed confirmation of U.S. Fed Chair nominee Kevin Warsh is also a variable… Dovish stance maintained amidst prevailing short-term caution.
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Nomura Securities announced today that it forecasts the U.S. Federal Reserve's first interest rate cut in September and a further cut in December. The key rationale is that military conflict in the Middle East has emerged as a new risk factor for inflation. This reflects concerns that rising oil prices and supply chain disruptions could reignite inflationary pressure.
Jeremy Schwartz, Chief U.S. Economist at Nomura Securities, cited the delay in the confirmation process for Federal Reserve Chair nominee Kevin Warsh as another reason for revising the timing of interest rate cuts. This analysis suggests that the uncertainty surrounding the leadership change at the Fed is influencing monetary policy decisions. Schwartz predicted that while current inflationary pressures are considered a temporary phenomenon, the Fed will maintain a cautious approach in the short term. However, he added that the fundamental inclination of Fed policymakers still favors an accommodative stance.
Choi Joo-hoon joohoon@blockstreet.co.kr
