【Citi: Inflation Slows, Fed Rate Cuts May Exceed Current Expectations】Golden Finance reports that the Federal Reserve has raised its target for the federal funds rate at the end of 2025 by 0.5 percentage points. Citi economist Andrew Holenshorst believes that the Fed may find itself in a bind. As the core PCE rose by 0.1% month-on-month in November, the price increases are slowing down, and the eventual rate cuts by the Fed may exceed current expectations. "In our base case, a softening labor market will lead the Fed to cut rates at every subsequent meeting." This view contrasts with the market's expectation that the Fed will pause rate cuts in January. "But even if we are wrong, a stagnant unemployment rate and slowing inflation are sufficient reasons to cut rates at every meeting beyond January at least."