According to ChainCatcher, Citibank predicted on Monday that the US economy will show clear signs of weakness by June, prompting the Federal Reserve to make its first rate cut this year, potentially cutting rates up to five times. Citibank economists stated that Federal Reserve officials will focus more on the health of the economy and labor market rather than inflation.
Citibank wrote: We expect a series of data to make Federal Reserve officials more dovish before June. This leads us to believe that the risk is tilted towards faster and/or more significant rate cuts. Currently, Citibank says that by the end of 2025, the key federal funds rate is expected to drop from the current 4.25% to 4.5% to a range of 3% to 3.25%.
