Citi Delays Fed Rate Cut Forecast

Citigroup has revised its outlook on Federal Reserve interest rate reductions, now anticipating cuts to occur later in the year than previously projected. Previously considered a 'dove' among major financial institutions regarding Fed policy, Citigroup now aligns with a more hawkish stance. The bank's updated forecast suggests two 25-basis-point rate cuts, one in October and another in December, with potential for further reductions in the subsequent year. This shift reflects evolving economic conditions and the Federal Reserve's current policy trajectory.