Fed, Citigroup Push First Rate Cut to October as Rates Stay Unchanged
Updated
Updated · Bloomberg · Jun 19
Fed, Citigroup Push First Rate Cut to October as Rates Stay Unchanged
3 articles · Updated · Bloomberg · Jun 19
Summary
October is now the expected start for Fed rate cuts in both the central bank’s revised projections and Citigroup’s forecast, slipping one month later than previously expected.
Wednesday’s shift followed the Fed’s decision to leave interest rates unchanged and update its outlook, signaling a slower path to easing than markets had anticipated.
BofA’s Mark Cabana said US employment is still running above breakeven, a backdrop that can support the Fed’s wait-and-see stance on cutting rates.
The revised timing points to a more cautious policy outlook, with labor-market resilience helping delay the start of rate relief.