Citigroup adjusted its forecast for the Federal Reserve's interest rate path and proposed a decision to raise interest rates in September and then start cutting interest rates by mid-2027. Citibank economists Andrew Hollenhorst and Veronica Clark wrote in a research report on Friday that August's higher-than-expected core inflation data and another rise in energy prices “are likely just enough to facilitate consensus and support a 25 basis point increase in interest rates at next week's FOMC meeting.” The forecast is that the Fed will keep interest rates unchanged until June; then, as inflation falls, the Federal Reserve will cut interest rates three times from June to the end of 2027. Earlier, Citi expects the labor market to weaken to induce the US The Federal Reserve will cut interest rates this year

Citigroup adjusted its forecast for the Federal Reserve's interest rate path and proposed a decision to raise interest rates in September and then start cutting interest rates by mid-2027. Citibank economists Andrew Hollenhorst and Veronica Clark wrote in a research report on Friday that August's higher-than-expected core inflation data and another rise in energy prices “are likely just enough to facilitate consensus and support a 25 basis point increase in interest rates at next week's FOMC meeting.” The forecast is that the Fed will keep interest rates unchanged until June; then, as inflation falls, the Federal Reserve will cut interest rates three times from June to the end of 2027. Earlier, Citi expects the labor market to weaken to induce the US The Federal Reserve will cut interest rates this year