Citi Predicts Start of Fed Rate Cuts in September
📉 Starting in September and continuing through the next seven meetings until July 2025, the Federal Reserve will reduce the key interest rate eight times by 25 basis points each, totaling a 2% reduction, according to Citi #Analysts .
🗝 The regulator is expected to maintain the key rate at 3.25% until the end of next year.
👀 Experts noted that the Fed is likely to change its policy as the economy is "heading towards a sharp downturn." 🔪
🔣 Signs of this include rising unemployment to 4.1% and cooling business activity in the services sector. Citi also highlighted the "dovish" tone of recent comments by Fed Chair #JeromePowell .
🕰 On July 9 at 14:00 UTC, the Fed Chair will speak before the Senate Banking Committee. #signals regarding adjustments to monetary policy can be expected.
As of now, the swaps market estimates a 70% chance of a rate cut in September, according to Bloomberg. 🧐
