Fed seen cutting rates after muted CPI report

The Fed will likely ease policy at the September meeting by 25 basis points, followed by two more cuts in December and March, Nomura economists wrote in a note. — Bloomberg

WASHINGTON: Economists at Nomura Holdings Inc now forecast the US Federal Reserve (Fed) will begin cutting interest rates in September as the labour market weakens and inflation presents less risk.

The Fed will likely ease policy at the September meeting by 25 basis points (bps), followed by two more cuts in December and March, Nomura economists wrote in a note.