Citigroup: Maintains its forecast for the Fed to cut interest rates by 125 basis points this year
According to a report from Gold Ten, 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 investment 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 cuts this year and four cuts in the first half of next year.
