Citi: Maintains its expectation for the Federal Reserve to cut rates by 125 basis points this year

ChainCatcher news, according to Jinshi reports, Citigroup maintains its expectation for the Federal Reserve to cut interest rates by 125 basis points this year. Additionally, the bank expects more cuts of 25 basis points in 2025, pushing the terminal rate to a range of 3%-3.25%.

Other Wall Street investment banks, such as Macquarie and Deutsche Bank, also retain the expectation that the Federal Reserve will have two more cuts of 25 basis points this year. The Morgan Stanley team, including economists Seth Carpenter and strategist Matthew Hornbach, stated that officials may choose to implement a series of regular rate cuts (25 basis points) before mid-2025, with two cuts this year and four cuts in the first half of next year.