A stronger-than-expected August U.S. employment report prompted Citigroup to delay its forecast for Federal Reserve rate cuts until June 2027, although market pricing increased the probability of a September hike. Employers added 162,000 jobs versus economists’ expectations of roughly 56,000, unemployment held at 4.1%, and labor-force participation rose to 61.6% from July’s five-year low of 61.4%. Citi now expects quarter-point cuts in June, September and December 2027, replacing its earlier forecast for cuts in October and December 2026 and January 2027. The bank said stable employment removed pressure for near-term easing, while cooler inflation, wages and core consumer prices could eventually support cuts. Technology occupation employment rose by 86,000 in August, AI-related postings surpassed 320,000 and nearly 600,000 technology postings remained active, despite about 14,700 cuts at U.S.-headquartered technology companies. The broader hiring market remained more than 20% below its pre-pandemic level.