Nomura: Fed will cut interest rates by only 25 basis points next year, previously expected to be 100 basis points

David Seif, chief economist for developed markets at Nomura, responded to a question about what Trump's trade policy would mean for the Fed. His answer was as follows: "We think Trump will impose tariffs quickly, and tariffs will lead to inflation, which will rise by about 0.75 percentage points in the United States by the end of 2025. So we think the Fed will only cut interest rates by 25 basis points (in March) in 2025, compared to our previous forecast of 100 basis points."