Citi analysts predict the Federal Reserve will start cutting interest rates in September

ChainCatcher News, analysts at Citigroup, a U.S. multinational investment bank and financial services company, predict that the Federal Reserve (Fed) will begin cutting interest rates in September and will lower rates by a total of 200 basis points (bps) over the next eight Federal Open Market Committee (FOMC) meetings.

Citibank expects the federal funds rate, currently at 5.25%-5.5%, to drop to around 3.25%-3.5% by the summer of 2025. Analysts at Citibank attribute this to weak economic growth and a slowdown period.