Citigroup: The Federal Reserve may cut interest rates up to 5 times this year

ChainCatcher news, Citibank predicted on Monday that by June, the U.S. economy will show significant signs of weakness, prompting the Federal Reserve to make its first rate cut of the year, potentially reducing rates up to five times. Economists at Citibank stated that Federal Reserve officials will focus more on the health of the economy and labor market rather than inflation.

Citibank wrote: We expect a series of data to make Federal Reserve officials more dovish before June. This leads us to believe that the risks lean towards faster and/or larger rate cuts. Currently, Citibank indicates that by the end of 2025, the key federal funds rate is expected to decrease from the current range of 4.25% to 4.5% to a range of 3% to 3.25%.