Nomura Warns of Potential Fed Rate Cut Impacts

2 mins mins

Key Points:

Nomura forecasts U.S. Fed rate cuts amidst political tension.
Rate cuts may weaken dollar and affect U.S. assets.
Investors should prepare for potential market liquidity changes.

Nomura Securities predicts a June rate cut under a new Fed chair, potentially sparking friction with the Trump administration, affecting U.S. assets, bonds, and the dollar.

This potential conflict and economic uncertainty could trigger a shift away from U.S. assets, influencing global markets and the cryptocurrency sector, notably impacting BTC and ETH.

Nomura Predicts Dollar Weakness and Global Market Shifts

Nomura Securities has forecasted potential U.S. Federal Reserve rate cuts under a new chair in 2026, potentially leading to political tensions. This could affect the financial stability of U.S. markets.

The anticipated rate cuts are expected to weaken the U.S. dollar, impacting global investors and potentially leading to a decrease in U.S. bond yields and equities. According to Nomura Securities, “We expect the Fed to pause rate cuts in January 2026. Less vigilance on inflation risk under new Fed leadership will likely lead to cuts in June and September 2026.” Nomura Connects

Market experts caution that these changes might trigger turbulent market conditions. Investor vigilance is advised as the scenario unfolds and could significantly affect asset allocations worldwide.

Crypto Impact: Bitcoin Trades Amid Fed Rate Speculation

Did you know? Nomura’s prediction of political tension and market shifts in 2026 echoes the Fed’s 2018-2019 pivot, when rate cuts followed a significant market downturn and affected global liquidity dynamics.

Bitcoin (BTC) currently trades at $90,003.66 with a market cap of $1.80 trillion, representing a 59.21% market dominance. BTC’s price has fluctuated, with a 2.69% increase over 24 hours. CoinMarketCap reports trading volume increased by 98.66% in the last day.

bitcoin-daily-chart-5356 — Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 06:17 UTC on December 29, 2025. *Source: CoinMarketCap*

Insights from Coincu’s research indicate potential regulatory challenges and financial impacts amid predicted Fed rate adjustments. Data shows similar scenarios previously affected crypto markets, demonstrating the intricate link between traditional and digital finance. Nomura Investment Outlook 2024

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.