Key facts
- Citigroup economists predict three Federal Reserve rate cuts this year.
- This forecast remains unchanged despite strong US jobs data for May.
- The jobs data has lowered expectations for imminent rate cuts.
Economists at Citigroup Inc. are maintaining their forecast that the Federal Reserve will implement three interest rate cuts this year. This prediction stands in contrast to the broader market sentiment, which has seen expectations for near-term rate reductions diminish following the release of a strong US jobs report for May. The robust employment figures suggest continued economic resilience, potentially prompting the Federal Reserve to keep interest rates higher for longer than previously anticipated. Citigroup's view represents a divergence from the consensus, highlighting the ongoing debate about the future path of monetary policy.