Nomura Securities stated on Thursday that following the Federal Reserve's 25-basis-point rate cut on Wednesday, it now expects the Fed to hold rates steady at its December policy meeting.

The Japanese brokerage had previously anticipated a 25-basis-point rate cut in December.

In a report, Nomura said, "Data in the coming months may show mild weakness, but we doubt it will be sufficient to reignite the Federal Open Market Committee's (FOMC) concerns over labor market deterioration."

Fed Chair Jerome Powell noted that internal policy disagreements and insufficient federal data could hinder further rate cuts this year. He highlighted risks in the labor market and cautioned against acting without a clearer economic outlook.

Nomura projects three 25-basis-point rate cuts by the Fed in March, June, and September of 2026.