Citibank delays Fed rate cut expectations, with a total of 75 basis points cut expected in September, October, and December.

Ask AI · Why did Citigroup adjust its rate-cut expectations due to stronger-than-expected jobs data?

【Global Times Finance & Business Report】According to Reuters, Citigroup Group has pushed back its expectations for the Federal Reserve’s rate-cut timeline due to unexpectedly strong U.S. employment growth and ongoing inflation risks.

Reuters

In a report it published recently, the Wall Street brokerage said it now expects total rate cuts of 75 basis points in September, October, and December, rather than the previously expected June, July, and September.

Citigroup said: “We still believe that signs of weakness in the labor market will lead to rate cuts later this year. But the trajectory of the data to be released soon suggests that the start of rate cuts will be later than our earlier expectations.”

After the end of a strike by healthcare workers and a rise in temperatures, U.S. employment growth rebounded more than expected in March; however, a conflict with Iran that still shows no clear signs of an end is increasingly putting downward pressure on the labor market. Citigroup Bank said that weak hiring will push the unemployment rate higher in the summer, similar to what has happened in recent years. (Nanmu)