Citigroup economists on Friday pushed back their forecast for the next U.S. Federal Reserve interest-rate cut. They now anticipate the cut in June 2027.
This revises the bank's previous call. Citigroup had anticipated rate reductions beginning in October 2026.
The change in outlook followed the stronger-than-expected August jobs report. The U.S. economy added 162,000 jobs, handily beating estimates. Citigroup economists noted the resilient labor market reduces immediate pressure on the central bank to ease monetary policy. This shifts the focus toward inflation data.