Nomura: With inflationary pressure, the Federal Reserve may cut interest rates or delay until September.

Nomura has postponed its expectations for the Fed's rate cut to September and December, citing new inflation risks brought about by the conflict in the Middle East. Nomura's chief US economist Jeremy Schwartz also pointed out that the nomination confirmation of Fed Chair nominee Kevin Warsh has been delayed, which is another reason why he adjusted the rate cut timetable from the earlier forecast of June and September. While price pressures are considered temporary, the Fed may remain cautious in the near term. However, policymakers still maintain an easing bias, and Nomura expects the new Fed chair to prioritize significant policy loosening. He said, "Officials at the Federal Open Market Committee continue to have an easing bias and show a asymmetric response to any signs of weakness in the labor market."