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Citigroup: "Fed seen cutting policy rate by 25bp in March, July and September this year"

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JH Kim
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Summary

  • Citigroup said it expects the US Federal Reserve (Fed) to cut the policy rate by 25bp each in March, July and September this year.
  • It said this revises the expected timing of the Fed’s policy rate cuts from January, March and September to March, July and September.
  • Citigroup said it analyzed that, given the trend of moderating inflation and economic conditions, the Fed is likely to move toward rate cuts at a more cautious pace.

According to Walter Bloomberg, a breaking-news economics channel, on the 9th (local time), Citigroup said it expects the US Federal Reserve (Fed) to cut the policy rate by 25bp (0.25% point) each in March, July and September this year. This revises its previous forecast for rate cuts in January, March and September.

Citigroup analyzed that, considering the broader trend of moderating inflation and overall economic conditions, the Fed is likely to move toward rate cuts at a more cautious pace.

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Photo=Shutterstock
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JH Kim

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