Citigroup: Inflation slows, Fed rate cuts may exceed current expectations
Here is the English translation, with the content inside <> not translated:
The Mars Finance news reported that the Federal Reserve has raised the federal funds rate target by 0.5 percentage points by the end of 2025. Citigroup economist Andrew Hollenhorst believes that the Federal Reserve may find itself in a state of confusion. Due to the 0.1% month-on-month increase in core PCE in November, the slowdown in price increases, the Federal Reserve's eventual rate cut may exceed current expectations. "In our baseline assumption, a softening labor market will lead the Federal Reserve to cut rates at each subsequent meeting." This view is at odds with the market's expectation that the Federal Reserve will pause rate cuts in January. "But even if we're wrong, stable unemployment and slowing inflation would be enough reason for the Federal Reserve to cut rates at every meeting except January."
