Citigroup Keeps 3 Fed Rate-Cut Calls as Strong May Jobs Data Bolsters Hawks
Updated
Updated · Bloomberg · Jun 5
Citigroup Keeps 3 Fed Rate-Cut Calls as Strong May Jobs Data Bolsters Hawks
3 articles · Updated · Bloomberg · Jun 5
Summary
Citigroup on Friday kept its forecast for three Federal Reserve rate cuts this year, even after a stronger-than-expected May U.S. employment report.
Andrew Hollenhorst, Citi’s chief U.S. economist, said the jobs data will push Fed officials at the June 16-17 meeting to focus more on upside inflation risks than labor-market weakness.
Citi still expects the labor market to soften over the next three months, a shift it says would steer markets back toward pricing in cuts rather than possible hikes.
The stance leaves Citi increasingly isolated among forecasters, underscoring a widening split over whether resilient jobs data can delay any Fed easing in 2026.