Central Banks
Citi Says Wall Street Is Wrong to Slash Fed Rate-Cut Bets
- Traders now pricing less than two cuts from Fed in 2024
- But Citi holds call for 125 basis points of easing this year
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Economists at Citigroup Inc. are going out on a limb by wagering that virtually everyone on Wall Street is wrong about the Federal Reserve.
After three straight months of slightly faster-than-expected inflation readings, rivals at Bank of America Corp., Goldman Sachs Group, Morgan Stanley, and other banks have dialed back their forecasts for interest-rate cuts this year. Chair Jerome Powell lent support to those moves on Tuesday, when he signaled that policymakers are in no hurry to ease policy.