Citigroup: The Fed May Cut Rates Up to 5 Times This Year

BlockBeats News, April 22, Citibank predicted on Monday that the U.S. economy will show clear signs of weakness by June, prompting the Fed to cut interest rates for the first time this year, possibly up to five times.

Citibank's economists stated that Fed officials will focus more on the health of the economy and the labor market rather than on inflation.

Citibank wrote: "We expect a series of data to make Fed officials more dovish before June. This leads us to believe that the risk is tilted toward a faster and/or larger rate cut."

Currently, Citibank stated that by the end of 2025, the key federal funds rate is expected to drop from the current range of 4.25% to 4.5% to a range of 3% to 3.25% (FXStreet).