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Citi: The Fed will start cutting interest rates in September and cut a total of 200 basis points.
Citigroup's Citi Research analysts predict that the Federal Reserve will start cutting interest rates heavily in the coming months and continue until next summer.
In a statement last Friday, the bank cited new signs of economic slowdown and believed that the Fed would cut interest rates by 25 basis points at each meeting starting from September, with a total of eight cuts until July 2025. This will drop the Benchmark Interest Rate by 200 basis points, i.e. from the current 5.25%-5.5% to 3.25%-3.5%, and will remain unchanged for the remainder of 2025.