The bank now expects easing in October and December 2026 and January 2027 after the Federal Reserve held rates steady and signaled a more hawkish stance.
Citigroup delayed its expected Federal Reserve easing path by one month after the U.S. central bank held rates steady in its June 18 decision and pointed to a more hawkish policy stance. The bank now forecasts rate cuts in October and December 2026 and January 2027, replacing its previous baseline of September, October and December 2026. Citi said many dot-plot projections, the Fed officials' published rate-path estimates, might have been lower if policymakers had more time to absorb the recent sharp drop in oil prices. The report also noted that nearly half of policymakers still see a chance of hikes this year, while LSEG data showed traders had largely priced in a 25-basis-point hike by October.