Citigroup: Maintains its forecast for the Fed's rate cut this year at 125 basis points
Odaily reports that Citigroup maintains its expectation of a 125 basis point rate cut by the Federal Reserve this year. Furthermore, the bank expects an additional 25 basis point rate cut in 2025, which will raise the terminal rate to the 3%-3.25% range. Other Wall Street banks, such as Macquarie and Deutsche Bank, have also retained their expectations of two more 25 basis point rate cuts by the Federal Reserve this year. The Morgan Stanley team, including economist Seth Carpenter and strategist Matthew Hornbach, stated that officials may choose to implement a series of regular 25 basis point rate cuts before mid-2025, with two rate cuts this year and four in the first half of next year.
