Discover why Citigroup revises US rate cut outlook as strong employment data reshapes economic expectations. Stay informed on financial trends.
Following a stronger-than-anticipated employment report for May, Citigroup has revised its projections for US rate reductions. Initially, the financial institution expected rate cuts to commence in July; however, this timeline has now been shifted to September.
Reduction in Rate Cuts: The bank, responding to signs of a labor market that is decelerating more gradually than previously thought, now anticipates three rate cuts instead of four for the current year. The revised plan includes a total reduction of 75 basis points, distributed in three equal installments in September, October, and December.
Future Rate Adjustments: Looking ahead to 2026, Citigroup forecasts two additional rate cuts, each by 25 basis points, scheduled for January and March. These adjustments reflect the bank’s continuous assessment of the economic landscape and employment trends.
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