The Fed will cut interest rates continuously from September, with a cumulative cut of 200 basis points
Analysts at Citi Research expect the Fed to begin a large-scale interest rate cut within a few months, and the process is expected to continue until next summer.
In a report last Friday, Citi pointed out that new signs of economic slowdown suggest that the Fed will cut interest rates by 25 basis points at each meeting from September until July 2025, a total of eight cuts.
This will reduce the benchmark interest rate from 5.25%-5.5% now to 3.25%-3.5%, and remain unchanged for the rest of 2025.