Citigroup: Maintains the expectation for a 125 basis point rate cut by the Fed this year

Odaily Planet Daily News Citigroup maintains its expected 125 basis points for the Fed’s interest rate cut this year, but now expects the Fed to cut interest rates by 25 basis points in December, down from the previous forecast of 50 basis points. In addition, the bank expects more interest rate cuts of 25 basis points in 2025, pushing the Intrerest Rate up to the range of 3%-3.25%. Other brokerages such as Macquarie and Deutsche Bank have maintained expectations for two more 25 basis point rate cuts by the Fed this year. In addition, Morgan Stanley’s team, including economists Seth Carpenter and strategist Matthew Hornbach, said officials may choose to implement a series of regular rate cuts (25 basis points) before mid-2025, with two rate cuts this year and four in the first half of next year. (Jinshi)