Citi: Fed May Cut Rates Up to 5 Times This Year

According to a report by Jinse, Citibank predicted on Monday that by June, the U.S. economy will show clear signs of weakening, prompting the Federal Reserve to make its first rate cut of the year, potentially cutting rates up to five times. Economists at Citibank stated that Federal Reserve officials will focus more on the health of the economy and the labor market rather than inflation. Citibank wrote: We anticipate that a series of data will make Federal Reserve officials more dovish by June. This leads us to believe the risks are inclined towards quicker and/or more substantial rate cuts. Currently, Citibank states that by the end of 2025, the key federal funds rate is expected to decrease from the current 4.25% to 4.5% range to a range of 3% to 3.25%.